US Congress has two days to avert shutdown after Trump rejects spending invoice By Reuters

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By Richard Cowan, Bo Erickson, Andy Sullivan and Katharine Jackson

WASHINGTON (Reuters) – The U.S. Congress has two days to avert a partial authorities shutdown after Republican President-elect Donald Trump rejected a bipartisan deal late on Wednesday and demanded lawmakers additionally increase the nation’s debt ceiling earlier than he takes workplace subsequent month.

Trump pressured his fellow Republicans in Congress to reject a stopgap invoice to maintain the federal government funded previous the deadline of midnight on Friday.

Absent congressional motion, the U.S. authorities will start a partial shutdown on Saturday that might disrupt all the things from air journey to regulation enforcement within the days main as much as the Dec. 25 Christmas vacation.

The bipartisan deal reached on Tuesday would have prolonged funding by March 14.

Trump warned that Republicans who vote for the present legislative bundle may have bother getting re-elected as a result of they are going to face major challenges inside their very own celebration.

“Any Republican that would be so stupid as to do this should, and will, be Primaried,” Trump wrote on his Fact Social platform.

If it had been to materialize, it will be the primary authorities shutdown since one which prolonged by December 2018 into 2019, throughout Trump’s first four-year White Home time period.

Trump is now calling on Congress to go laws that might tie up unfastened ends earlier than he takes workplace subsequent month by elevating the federal government’s borrowing authority – a politically tough job – and increasing authorities funding.

He additionally mentioned lawmakers ought to strip out parts of the deal backed by Democrats, whose help can be needed for passage.

Trump’s feedback got here after his ally Elon Musk, who has been tasked by Trump to prune the federal finances, pressured Congress to reject the invoice and mentioned those that again it needs to be voted out of workplace.

TALKS CONTINUED LATE INTO THE NIGHT

After a gathering with Vice President-elect JD Vance and different high Republican leaders late on Wednesday, Republican Home of Representatives Speaker Mike Johnson mentioned there was a “productive conversation,” with out giving particulars.

“I’m not going to say anything else about it tonight because we are in the middle of these negotiations,” Johnson mentioned.

When requested if elevating the debt ceiling shall be a part of an settlement being labored on, Home Republican chief Steve Scalise mentioned lawmakers had been “not there yet.”

Home Appropriations Committee Chair Tom Cole, who was additionally on the assembly, was requested if he was assured there wouldn’t be a authorities shutdown. He replied: “I’m not confident of anything.”

NEXT STEPS REMAIN UNCLEAR

The following steps for Congress had been unclear. Bipartisan settlement shall be wanted to go any spending invoice by the Home, the place Republicans at the moment have a 219-211 majority, and the Senate, the place Democrats at the moment maintain a slender majority.

The White Home of Democratic President Joe Biden, who stays in energy till Trump takes workplace on Jan. 20, mentioned on Wednesday that “Republicans need to stop playing politics” and {that a} authorities shutdown shall be damaging.

The present invoice would fund authorities businesses at present ranges and supply $100 billion for catastrophe reduction and $10 billion in farm help. It additionally consists of a variety of unrelated provisions, comparable to a pay increase for lawmakers and a crackdown on hidden lodge charges.

Trump mentioned Congress ought to restrict the invoice to short-term spending and catastrophe reduction and in addition increase the nationwide debt ceiling now earlier than it involves a head subsequent 12 months.

The stopgap measure is required as a result of Congress has didn’t go common spending laws for the fiscal 12 months that started on Oct. 1. It doesn’t cowl profit applications like Social Safety, which proceed routinely.

The U.S. authorities has spent extra money than it has taken in for over 20 years, as Democrats have expanded well being applications and Republicans have lower taxes.

Steadily mounting debt – at the moment $36 trillion – will pressure lawmakers to lift the debt ceiling in some unspecified time in the future, both now or when borrowing authority runs out subsequent 12 months. Failure to behave may have doubtlessly extreme financial penalties.

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