President Joe Biden Enacted a Law That Prevents a Government Shutdown
President Joe Biden enacted a law that prevents a government shutdown, concluding days of turmoil following Congress's approval of a temporary funding measure shortly after the deadline. The package did not include President-elect Donald Trump's key demand for increased debt capacity.

The legislation maintains government funding at current levels until March 14 and allocates $100 billion for disaster relief and $10 billion for agricultural support.
House Speaker Mike Johnson, R-La., had emphasized the need for lawmakers to fulfill their duties and avoid shutting down federal operations. However, uncertainty loomed throughout the week as Trump insisted that any deal must raise the government's borrowing limit, threatening to initiate shutdowns if his demand was unmet.
Johnson's modified plan received overwhelming support, passing with a 366-34 vote in the House and an 85-11 vote in the Senate after midnight. By that time, the White House announced that preparations for a shutdown had ceased.
“There will be no government shutdown,” confirmed Senate Majority Leader Chuck Schumer, D-N.Y.
After the House vote, Johnson spoke with Trump and described the agreement as beneficial for the country, adding that the president-elect was “certainly happy” with the outcome.
This marked Johnson's third attempt to fulfill a fundamental government obligation—keeping it operational. His challenges raised doubts about his future as Speaker, especially as tensions grew within his party and with Trump's billionaire associate, Elon Musk, guiding the legislative strategy from a distance.
The House is set to elect the next speaker on January 3, 2025, when the new Congress convenes, with Republicans holding a slim majority of 220-215, leaving Johnson little room for error in securing the Speaker position.
Some Republicans, like Rep. Andy Harris of Maryland, criticized the bill's spending and expressed uncertainty about their leadership. A sense of discontent with Johnson is growing among colleagues.
Trump's last-minute demand regarding the debt ceiling was a tall order, leaving Johnson with few options but to navigate around such pressures. The Speaker understood that the slim Republican majority alone would struggle to pass any funding package, especially since many Republicans opposed increasing the federal deficit.
As Republicans prepare to regain full control of the White House, House, and Senate in the coming year, with plans for tax cuts and other initiatives, they are expected to regularly depend on Democratic votes to maintain basic government functions.
The federal debt currently stands at approximately $36 trillion, and rising inflation post-pandemic has increased the government's borrowing costs, which will soon exceed national security spending. The last adjustment to the debt ceiling occurred in June 2023, when lawmakers opted to suspend it until January 1, 2025.
At present, raising the debt limit isn't critical, as the Treasury can implement "extraordinary measures" to prevent a default. These accounting strategies might extend the default deadline to summer 2025, but Trump is keen to avoid a situation requiring a hike during his presidency.
GOP leaders plan to discuss the debt ceiling as part of tax and immigration legislation next year. They have informally agreed to raise the limit while also aiming to cut $2.5 trillion in spending over the next decade.
This arrangement mirrors the failed proposal from Thursday—absent Trump's debt demand—but is significantly smaller than the original, comprehensive 1,500-page bill Johnson negotiated, which was rejected by Trump and Musk. That larger proposal included a mix of controversial pay raises for lawmakers and various bipartisan-supported initiatives, which now face a more difficult path to enactment.
Though not yet inaugurated, Trump is demonstrating both influence and limitations in his interactions with Congress, orchestrating activities from Mar-a-Lago alongside Musk, who is leading efforts in the new Department of Government Efficiency.