Republicans in the US House of Representatives said they had agreed on a new spending package that would avert an imminent government shutdown and prepared for a quick vote, as President-elect Donald Trump praised the deal after scrapping an earlier bipartisan version.
“There is a deal,” Republican Rep. Tom Cole, who chairs a committee that oversees spending, told reporters.
No Democrats immediately commented on the terms of the deal. Approval from the Senate, which they control by a 51-49 majority, and Democratic President Joe Biden would be needed to enact the measure and avoid a government shutdown starting Saturday.
If lawmakers fail to meet that deadline, the U.S. government will begin a partial shutdown that would cut funding for everything from border surveillance to law enforcement in the days before Christmas and cut the salaries of more than 2 million. of federal employees. The US Transportation Security Administration warned that travelers could face long lines at airports.
Trump urged lawmakers to vote in favor of the package. The incoming president has demanded that lawmakers tie up loose ends before taking office on January 20.
The House of Representatives will vote on the bill later this Thursday, Republican Rep. Anna Paulina Luna told reporters.
The new package would fund government operations for three months, until Trump is in the White House and Republicans control both chambers of Congress, according to a source familiar.
It would also provide $100 billion in disaster aid and $10 billion in agricultural aid and expand farm and food aid programs that were set to expire at the end of the year.
The package would also suspend the debt ceiling until January 2027, which could clear the way for trillions of dollars to be added to the $36 trillion federal debt.
Trump stood his ground earlier in the day, saying Congress should not keep the government running unless it also removes limits on federal debt.
“The debt ceiling should be eliminated completely,” Trump said.
Previous disputes over the debt ceiling have spooked financial markets, as a US government default would trigger credit shocks around the world. The cap has been suspended under an agreement that technically expires Jan. 1, though lawmakers likely won’t have to address the issue until the spring.
When he returns to power, Trump intends to enact tax cuts that could reduce revenue by $8 trillion over 10 years, increasing debt without offsetting spending cuts. He has promised not to reduce retirement and health benefits for seniors, which make up a large portion of the budget and are expected to rise sharply in coming years.
Top House Democrat Hakeem Jeffries said earlier in the day that it was “premature” to discuss measures on the debt ceiling.
“This is a moment that is not about the incoming president, it is not about millionaires and billionaires, it is about the damage that House Republicans will do to the American people if the government shuts down,” he said at a news conference. .
His office did not immediately respond to a request for comment on the new agreement.
Several Republicans had previously said they were not interested in eliminating the debt ceiling if they did not also reduce spending. “It’s like limiting, you know, increasing your credit card limit, without doing anything to actually limit spending,” Rep. Chip Roy told reporters.
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