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US: House Returns To Dysfunction After Spending Plan B Collapses

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Funding for US federal government agencies expires at 00:01 ET 05:01 GMT Saturday, with no clear route for passing a spending bill that will avert a government shutdown. Yesterday’s ad hoc negotiations to devise a Plan B spending bill were injected with fresh uncertainty after President-elect Donald Trump demanded that a suspension, or abolition, of the debt ceiling be included in a final funding package.

  • With the collapse of the Plan B bill, the House of Representatives has returned to a state of dysfunction, puncturing a short-lived sense of optimism that Trump’s re-election and Republican control of both chambers of Congress in 2025 would compel an armistice between Republican factions, facilitating a smoother implementation of Trump’s agenda.
  • Wednesday’s implosion of a 1,500-page-plus bipartisan funding bill - stuffed with last-minute policy add-ons - and a hastily cobbled together 116-page plan B package yesterday has dented House Speaker Mike Johnson (R-LA) and increased uncertainty surrounding the January 3 floor vote for speaker. 
  • The episode has also raised questions about Trump’s strategy and the level of influence his unelected advisor, Elon Musk, has over the direction of the incoming administration.
  • Please find in the attached PDF article a summary of yesterday's events and a full round-up of the pathways to resolving the stand-off.

Full article: Spending Plan B Collapses 

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Funding for US federal government agencies expires at 00:01 ET 05:01 GMT Saturday, with no clear route for passing a spending bill that will avert a government shutdown. Yesterday’s ad hoc negotiations to devise a Plan B spending bill were injected with fresh uncertainty after President-elect Donald Trump demanded that a suspension, or abolition, of the debt ceiling be included in a final funding package.

  • With the collapse of the Plan B bill, the House of Representatives has returned to a state of dysfunction, puncturing a short-lived sense of optimism that Trump’s re-election and Republican control of both chambers of Congress in 2025 would compel an armistice between Republican factions, facilitating a smoother implementation of Trump’s agenda.
  • Wednesday’s implosion of a 1,500-page-plus bipartisan funding bill - stuffed with last-minute policy add-ons - and a hastily cobbled together 116-page plan B package yesterday has dented House Speaker Mike Johnson (R-LA) and increased uncertainty surrounding the January 3 floor vote for speaker. 
  • The episode has also raised questions about Trump’s strategy and the level of influence his unelected advisor, Elon Musk, has over the direction of the incoming administration.
  • Please find in the attached PDF article a summary of yesterday's events and a full round-up of the pathways to resolving the stand-off.

Full article: Spending Plan B Collapses