The US government is one day away from running out of money, as Congress scrambles to come up with a short-term funding plan.
On Thursday night, Republicans' revised spending plan that would have avoided a government shutdown failed to win House approval.
He – she It needed a two-thirds majority in the House of Representatives to pass it, but it failed to reach this requirement. Thirty-eight Republicans broke ranks and voted against the bill, along with most Democrats.
President-elect Donald Trump had thwarted a previous funding deal concluded by Republican House Speaker Mike Johnson with Democrats.
Trump's condemnation of this bipartisan deal came in the wake of strong criticism of this measure by technology billionaire Elon Musk.
The replacement bill approved by Trump would have tied government funding to a two-year suspension of the federal debt limit, which limits how much the government can borrow to pay its bills. House Minority Leader Hakeem Jeffries, the chamber's top Democrat, called the proposal “laughable.”
Speaker Johnson must now go back to the drawing board, with only a few hours left on the clock.
Here are five things to know about a potential government shutdown:
1. How we got here
The looming government shutdown can now be traced back to September, when another budget deadline approached.
Johnson failed to pass a six-month funding extension. Most Democrats voted against the extension, which included a measure (the SAVE Act) requiring proof of citizenship in order to vote.
Instead, Congress reached a bipartisan agreement on a key bill that would keep the government funded through December 20.
Johnson pledged to his Republican convention next December, when the funding was set to expire, that they would not have to vote on an everything-but-the-kitchen-sink spending bill before the holiday break.
But when congressional leaders released the text of the latest spending bill on Tuesday, three days before lawmakers recessed for the holidays, it totaled 1,547 pages.
The bill would have extended government funding until March 14, about three months after Trump returns to the White House.
This plan included more than $110 billion (£88 billion) in emergency disaster relief and $30 billion in aid to farmers; First pay raise for lawmakers since 2009; Federal funds to rebuild the bridge that collapsed in Baltimore; health care reforms; And provisions aimed at preventing hotels and live event venues from deceptive advertising.
Some Republicans criticized Johnson for abandoning the key spending bill, specifically condemning the left-leaning provisions negotiated to win Democratic support.
Johnson defended the agreement, blaming “acts of God” for needing some additional provisions, such as disaster aid and assistance to farmers.
2. Trump's plan and the bipartisan tank holder
However, opposition to Johnson's spending deal increased on Wednesday.
Musk, who was tasked by Trump with determining spending cuts by co-leading the Department of Government Efficiency (which is… It is not an official government department), It exerted intense pressure against the current agreement With dozens of posts on X.
He called it “criminal” and frequently made false statements about the bill in his posts.
Any lawmaker who “votes for this obscene spending bill deserves to be voted on in two years,” Musk wrote on X.
After Musk raised his opposition to the spending bill, Trump and J.D. Vance, the incoming vice president, delivered the final blow to Johnson's deal that evening.
They said in a joint statement that they want streamlined legislation without the Democratic-backed provisions that Johnson included.
They also called on Congress to raise or eliminate the debt ceiling, which limits how much the government can borrow to pay its bills, and limit funding legislation to temporary spending and disaster relief.
They called anything else a “betrayal of our country.”
3. What happens next
Johnson and House Republicans introduced the streamlined legislation on Thursday, which then failed to get a vote that evening. It is not clear what they will do next.
Lawmakers are not expected to vote again Thursday, meaning they will return Friday morning with less than 24 hours on the clock until a potential shutdown.
But it is clear that a partisan blame game is afoot. After the bill was rejected on Thursday, Johnson told reporters that it was “very disappointing” that almost all House Democrats voted against it.
“I think it's really irresponsible for us to risk closing these cases on things they've already agreed to,” he said.
Johnson will likely need the support of Democrats, especially as divisions within his party over the bill became clear this week.
But Democrats are unlikely to help Johnson support the revised funding bill, blaming him for violating their bipartisan agreement.
“If you violate the bipartisan agreement, you will suffer the consequences that follow,” House Democratic Minority Leader Hakeem Jeffries said on Musk’s X website.
Others seem to mock Republicans because they appear to be taking their cues from the unelected Mr. Musk.
On the House floor on Thursday, Connecticut Rep. Rosa DeLauro, the top Democrat in the House, called the billionaire “President Musk,” to laughter from her Democratic colleagues.
“President Musk said: 'Don't do it, shut down the government,'” she said.
However, Johnson needs to find a way to win over Democrats in order to pass the spending bill, especially when pent-up anger within his caucus is about to boil over.
Time is also of the essence. These negotiations usually take weeks.
4. Effects of the government shutdown
Federal agencies rely on annual funding to operate. When Congress fails to pass the 12 spending bills that make up the spending budget, these agencies must stop carrying out their nonessential missions.
Essential services – such as border protection, in-hospital medical care, law enforcement and air traffic control – continue to operate.
But many federal employees may go without pay.
While Social Security and Medicare checks are being sent, benefits verification and card issuance stops. Supplemental Nutrition Assistance Program funding is mandatory, but food stamp benefits may be affected by the closure. This could delay similar assistance programs.
Other agencies are halting operations entirely.
The Food and Drug Administration stops food safety inspections, the Environmental Protection Agency stops inspections and national parks close to visitors.
5. Implications for Republicans
It was the first major test of Trump's influence over incumbent Republicans in Congress, and in the vote on Thursday, a number of them declined.
It also poses a challenge for Speaker Johnson, as the House is scheduled to vote in just 15 days on who will serve as Speaker of the House in the next Congress.
What previously seemed like a secure position for Johnson now seems less certain.
Facing backlash from Trump and Musk, the Louisiana Republican is now under scrutiny from members of his own party over his handling of government finances.
Many Republicans indicated they would not vote for Johnson to lead the House. He cannot afford to lose the support of many Republicans, because the party has a slim majority of no more than five seats in the next Congress.
The threat facing Johnson is serious, given Republican recent history.
In January 2023, Republican Kevin McCarthy of California went through 15 ballots before winning the Senate seat.
Just ten months later, he was ousted by Republicans, who criticized him for failing to cut spending and for working with Democrats to avoid a government shutdown.