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US: Trump And Musk Derail Bipartisan Spending Deal

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There is now a real risk of a government shutdown on December 21 after US President-elect Donald Trump torpedoed House Speaker Mike Johnson’s (R-LA) bipartisan deal to extend government funding for three months. Trump’s decision to tank Johnson’s deal came after informal advisor Elon Musk waged a social media crusade against the deal, citing concerns over extraneous policy and the high cost of the package.

  • Trump explicitly linked government funding to raising the debt ceiling for the first time, arguing that the debt limit should be lifted before he takes office on January 20, tying the short-term appropriations bill to one of the most challenging negotiations in Congress.
  • It is unclear how Congress would approach raising the debt ceiling in the coming days. Lawmakers are scheduled to depart Washington D.C. on Friday evening. The broader GOP plan was to address the debt limit in a reconciliation bill in the summer, shortly before the government nudged against a default.
  • The most obvious way forward for Johnson is to scrap assistance to farmers, disaster relief, and various Democrat add-ons in the funding deal. However, House Minority Leader Hakeem Jeffries (D-NY) indicated a clean CR will receive no Democrat support, meaning Johnson will have to take any compromise through the House Rules Committee and whip near-unanimous support from his conference.
  • Beyond the immediate shutdown threat, the episode demonstrates clear political risks for 2025, we have a full rundown in the article below. 

Full article: Trump and Musk Derail Funding Deal  

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There is now a real risk of a government shutdown on December 21 after US President-elect Donald Trump torpedoed House Speaker Mike Johnson’s (R-LA) bipartisan deal to extend government funding for three months. Trump’s decision to tank Johnson’s deal came after informal advisor Elon Musk waged a social media crusade against the deal, citing concerns over extraneous policy and the high cost of the package.

  • Trump explicitly linked government funding to raising the debt ceiling for the first time, arguing that the debt limit should be lifted before he takes office on January 20, tying the short-term appropriations bill to one of the most challenging negotiations in Congress.
  • It is unclear how Congress would approach raising the debt ceiling in the coming days. Lawmakers are scheduled to depart Washington D.C. on Friday evening. The broader GOP plan was to address the debt limit in a reconciliation bill in the summer, shortly before the government nudged against a default.
  • The most obvious way forward for Johnson is to scrap assistance to farmers, disaster relief, and various Democrat add-ons in the funding deal. However, House Minority Leader Hakeem Jeffries (D-NY) indicated a clean CR will receive no Democrat support, meaning Johnson will have to take any compromise through the House Rules Committee and whip near-unanimous support from his conference.
  • Beyond the immediate shutdown threat, the episode demonstrates clear political risks for 2025, we have a full rundown in the article below. 

Full article: Trump and Musk Derail Funding Deal