Clock Ticks as US Congress Battles to Avert Government Shutdown Over Debt Ceiling Stalemate

The United States Congress faces mounting pressure to strike a deal by Friday night to prevent a federal government shutdown after the House of Representatives rejected the latest funding bill in a dramatic 174-235 vote. The failed proposal, backed by President-elect Donald Trump, would have extended government operations until March 14, provided billions in disaster relief, and suspended federal borrowing limits for two years—a key demand of Trump.

The bill’s defeat has left House Republicans scrambling to draft an alternative before the midnight deadline. Republican Speaker Mike Johnson expressed optimism, stating, “We will regroup and come up with another solution. Stay tuned.” However, divisions within the GOP were evident as 38 Republican lawmakers opposed the measure, complicating Johnson’s task.

Meanwhile, Democrats criticized the proposal, with House Minority Leader Hakeem Jeffries calling it “not serious” and blaming “extreme MAGA Republicans” for steering the country toward a shutdown.

A government shutdown could halt critical federal programs, furlough thousands of workers, and delay pay for government employees, including military personnel.

Central to the impasse is the debt ceiling—a statutory cap on federal borrowing. President-elect Trump reiterated his demand to either abolish or extend the ceiling to 2029, calling it “ridiculous” in a post on Truth Social. “Without this, we should never make a deal,” he wrote.

The debt ceiling debate has drawn scrutiny from influential figures, including billionaire Elon Musk. The Tesla and SpaceX CEO criticized the initial bipartisan bill as “terrible” on his social media platform X, citing excessive spending and unrelated provisions. Trump amplified these criticisms, urging Republicans to reject any short-term funding measure that doesn’t address the borrowing cap.

The rejected bill had included provisions for disaster relief, support for farmers, and even unrelated measures like restrictions on technology investments in China. Despite its broad scope, the exclusion of a debt ceiling adjustment drew sharp rebukes from Trump and his allies.

Trump warned Republicans of political consequences, threatening to back primary challengers against those supporting a measure without addressing the borrowing limit. “If we don’t get it, we’re going to have a shutdown,” Trump told ABC News, framing it as a “Biden shutdown.”

A prolonged shutdown could undermine confidence in the U.S. government’s financial stability. The Treasury Department has limited options, relying on “extraordinary measures” to manage expenses once the debt ceiling is reached. Failure to resolve the issue risks a default, with potentially catastrophic effects on the global economy.

As lawmakers from both parties navigate a high-stakes standoff, the outcome will have far-reaching implications not only for federal employees but also for the incoming administration and the country’s economic trajectory.