The United States was very close to a government shutdown, which could have caused major problems, such as closing public services, stopping pay for millions of workers, and hurting the economy.
With the deadline approaching and heated arguments between political leaders, a last-minute deal was made to keep the government running.
The decision came after days of tough talks, high-profile involvement, and growing pressure to find a solution.
Let’s take a closer look at what happened, who was involved, and how the shutdown was avoided just in time.
- The US government agreed on a budget just in time, avoiding interruptions to federal services, but discussions about the debt ceiling were delayed.
- If a shutdown had happened, millions of people would have been affected, including unpaid federal workers and delays in services like passport processing and holiday travel.
- The longest government shutdown in US history lasted 35 days, which shows how much it can hurt the economy and the federal workforce.
US Government Shutdown Averted
The United States government was on the verge of shutting down, which could have disrupted services for millions of Americans, left federal workers without pay, and caused economic problems.
In a last-minute decision, President Joe Biden signed a temporary funding bill into law early Saturday morning, which prevented the shutdown.
The deal, reached after several days of heated arguments and discussions, will keep the government running until March 14, 2025.
Even though the shutdown was avoided, the deal did not solve issues like long-term spending and the federal debt ceiling, which will likely come up again soon.
The Senate passed the bill with a decisive 85-11 vote shortly after midnight, while the House of Representatives had already approved it with a 336-34 vote earlier.
This decision was made just in time, as the shutdown would have started at midnight on Friday if no agreement had been reached.
Without this bill, millions of federal workers could have been sent home without pay or forced to work without pay, leading to severe disruptions in public services.
Why the Shutdown Was Almost Not Avoided
The United States has a massive national debt of $36 trillion, and the cost of paying the interest on this debt is now more than what the country spends on national security.
The fight over the budget showed the differences between Republicans and Democrats and the disagreements within the Republican Party itself.
President-elect Donald Trump and billionaire Elon Musk were key figures in opposing earlier versions of the bill. They pushed Republicans to reject it, which led to a previously agreed-upon deal falling apart just days before the deadline.
The final bill, passed in time to avoid a shutdown, was much shorter than the original. And it was reduced from 1,547 pages to just 118 pages.
One significant omission in the bill was Trump’s request to raise the debt ceiling, an issue that will come up again in early 2025.
“We are grateful that everyone stood together to do the right thing,” said Republican House Speaker Mike Johnson after the bill was approved.
Johnson faced criticism from members of his party during the negotiations. Despite the hurdles, he stressed the importance of securing government funding before the end of the year.
The Consequences of a Potential Shutdown
Had the government failed to pass the funding bill, the consequences would have been severe and far-reaching.
A government shutdown would have closed or significantly reduced operations across a wide range of public services.
National parks, federally funded preschools, and food assistance programs would have been shuttered. At the same time, aid-reliant farmers and victims of natural disasters would have faced delays in receiving much-needed assistance.
For federal workers, the impact would have been immediate and personal.
More than two million federal employees would have faced disruptions, with hundreds of thousands potentially furloughed and the rest required to work without pay.
The last major shutdown, which occurred during Trump’s first presidential term in 2018-2019, lasted 35 days and left many government employees struggling to afford basic necessities.
Social Security and Medicare payments, considered mandatory spending, would have continued, but new applications might have faced delays.
Programs like WIC, which supports low-income women and children, could have seen funding lapses, leaving vulnerable populations at risk.
How Holiday Travel Might Have Been Disrupted
The timing of the budget crisis was particularly critical as millions of Americans prepared for holiday travel.
The Transportation Security Administration (TSA) estimated that it would screen over 39 million passengers between December 19 and January 2, making it one of the busiest travel seasons of the year.
A shutdown would have severely strained TSA operations.
While 59,000 of its 62,000 employees are considered essential and would have continued working without pay, past shutdowns revealed significant vulnerabilities.
During the 2018-2019 shutdown, up to 10% of TSA employees called in sick, causing long lines and closed airport checkpoints.
The Federal Aviation Administration (FAA), which oversees air traffic controllers, would also have been affected.
While over 12,000 controllers would continue working, hiring and training would have been suspended.
This is particularly concerning given the current shortage of air traffic controllers, which already strains the system and contributes to delays.
Road travel would have been similarly chaotic, with AAA predicting record numbers of drivers on the roads.
Over 119.3 million people were expected to travel more than 50 miles during the holiday season, with 107 million of them driving.
Traffic congestion, particularly on the weekends, was anticipated to be severe.
What the New Budget Includes and Leaves Out
The temporary funding bill included several necessary measures while leaving out others that had sparked controversy.
Key provisions included:
- Disaster Relief: $100 billion allocated for hurricane recovery and other natural disasters.
- Farmer Aid: $10 billion earmarked for agricultural assistance.
- Infrastructure Repair: Full federal funding is needed to rebuild Baltimore’s Francis Scott Key Bridge, which collapsed after a cargo ship collision in March.
However, the final version excluded Democratic priorities from the initial proposal, such as healthcare reforms, anti-deceptive advertising measures for hotels and live events, and the first pay raise for lawmakers since 2009.
Who Was Involved in the Shutdown Debate
House Speaker Mike Johnson managing disagreements within his own Republican Party while also dealing with outside pressure from Donald Trump and Elon Musk.
Some Republicans questioned Johnson’s ability to lead during the process, and this will be tested again on January 3, when a vote will decide if he remains Speaker.
Elon Musk, who Trump has asked to help reduce government spending in the next administration, strongly opposed earlier versions of the bill.
After the final version passed, Musk praised Johnson, saying he did a “good job given the circumstances.”
Meanwhile, Democratic leaders pointed out their role in preventing the shutdown.
“House Democrats have successfully stopped the billionaire boys club,” said Democratic Minority Leader Hakeem Jeffries, referring to the influence of Trump and Musk on the Republican Party during the debate.
A History of Shutdowns
Since 1976, the United States has experienced more than twenty government shutdowns, lasting from a single day to over a month.
The longest shutdown in US history occurred during Donald Trump’s first presidential term. It lasted 35 days and caused serious problems for the economy.
This latest budget crisis previews the legislative battles that may lie ahead when Trump takes office in January.
With Republicans set to control both the House and Senate, future debates are expected to be tense, especially when it comes to raising the debt ceiling.
For now, the government will keep running into the new year, but the deeper problems remain unresolved.
And the issues are likely to lead to more political struggles in 2025.
