US govt shutdown nears as GOP blocks bipartisan deal on debt ceiling

The US Congress scrambled on Friday to avert a partial government shutdown after conservative Republicans rebuffed President-elect Donald Trump's demand to tie the funding bill to a debt ceiling suspension.

House Speaker Mike Johnson, leading a narrowly Republican-controlled chamber, sought to navigate the political impasse as the funding deadline approached at midnight Friday (0500 GMT Saturday).

“We have a plan,” Johnson told reporters, expressing confidence in progress. “We’re expecting votes this morning.”

Tensions flared Thursday when conservative lawmakers rejected Trump’s proposal for a sweeping five-year debt ceiling suspension. This marked a sharp escalation from his earlier call for a two-year extension. Critics argued the move would add trillions to the $36 trillion federal debt.

Trump, set to assume office in a month, upped the ante with a late-night social media post: “Congress must get rid of, or extend out to, perhaps, 2029, the ridiculous Debt Ceiling. Without this, we should never make a deal.”

Efforts to pass a bipartisan funding measure collapsed after Trump and ally Elon Musk, the world’s richest person, publicly opposed the plan.

The revised alternative, which would maintain federal funding at current levels through March and allocate $100 billion for disaster relief, failed in the House by a vote of 174-235 on Thursday night.

The revised proposal omitted provisions designed to secure Democratic support, complicating efforts to pass it in the Democratic-majority Senate. President Joe Biden also voiced opposition to the reworked measure, according to the White House.

The deadlock has stoked fears of financial market disruptions, recalling previous debt ceiling battles that rattled investors. Although the debt limit remains technically suspended until January 1, lawmakers likely would not need to address the issue until spring under normal circumstances.

With time running out, Johnson and congressional leaders face the formidable task of reconciling party divisions and avoiding a costly government shutdown, all while navigating Trump’s escalating demands.