US govt dodges crippling shutdown with last-minute spending deal – saving Xmas for 800,000 workers at risk of no pay

THE US government has managed to dodge a crippling Christmas shutdown for over 800,000 workers with a last-minute spending deal.

Congress narrowly avoided the major public service nightmare as they passed a bill to fund federal agencies through till March.

Senate majority leader Chuck Schumer celebrates at the Capitol after the deal was passed in the final moments
Senate majority leader Chuck Schumer celebrates at the Capitol after the deal was passed in the final momentsCredit: AP
US House Speaker Mike Johnson speaks to the media following the government shutdown being narrowly avoided
US House Speaker Mike Johnson speaks to the media following the government shutdown being narrowly avoidedCredit: Reuters
Plans to approve the new budget were thrown into chaos just days ago when billionaire Elon Musk and new pal Donald Trump hit out at a bill
Plans to approve the new budget were thrown into chaos just days ago when billionaire Elon Musk and new pal Donald Trump hit out at a billCredit: AP

Without the agreement the government would have plunged into chaos on Saturday for the festive period with workers risking not getting paid.

All non-essential operations would have been postponed with up to 875,000 workers being put on furlough.

Up to 1.4 million staff would have also been made to work without any pay.

Many parks, monuments and national sites would have been forced to close due to payment woes.

The deadline for approving a spending package was missed by politicians before they expedited the process just minutes after.

It was approved after senators agreed to bypass the normal procedure in order to find a solution.

Democratic Majority Leader Chuck Schumer made a celebratory speech on the Senate floor following the bill.

He said: “It’s good news that the bipartisan approach in the end prevailed.

“It’s a good outcome for America and the American people.”

The Democrats hold a majority in the Senate so they are often in control of the big decisions.

Watch moment Trump says he ‘can’t get Elon Musk out of Mar-a-Lago’

The party was also crucial in helping the Republican majority in the House get the bill through earlier in the day.

It was supported by 336 votes to 34 in the House before also earning 85 votes in favour compared to 11 against in the Senate.

Plans to approve the new budget were thrown into chaos just days ago when billionaire tech mogul Elon Musk hit out at a bill.

Musk has quickly become one of the constant faces of US politics after aligning with president-elect Donald Trump for his election clean sweep.

Trump has even gifted the Tesla chief a role in his team as “efficiency czar”.

Musk pressured the Republicans into going back on a funding bill they had spent weeks trying to finalise and clear with Democrats.

His feelings were soon backed by Trump who wanted to increase the debt ceiling and help cap the amount the government can borrow.

Lawmakers finally agreed on the festive-time spending boost as they pledged a $110billion package to be carried out until March 14.

It will also include money for disaster aid and financial relief for farmers.

This bill closely mirrors a previous unsuccessful version, with the main difference being the exclusion of a two-year pause on the nation’s self-imposed borrowing ceiling that was requested by Trump.

House Speaker Mike Johnson said following the bill: “This is a good outcome for the country.”

He added he has spoken with Trump who was “certainly happy about this outcome”.

The bill will now be sent to the White House where President Joe Biden is expected to sign it into law later on Saturday.

What is a government shutdown?

A GOVERNMENT shutdown would have been terrible for hundreds of thousands of Americans.

If the Senate failed to approve the needed spending bill then the government would have been unable to provide payment to their staff.

Federal employees and the public services they work in would have all been badly affected.

This could mean places run by the government who often see high numbers of visitors across Christmas won’t be open die to staffing issues.

Some would be placed on furlough and not work at all whereas others would simply work without pay until the money is found.

One of the worst affected areas would be the courts.

Civil proceedings would be paused with just criminal prosecutions continuing – likely resulting in a lengthy backlog.

Luckily essential government agencies like the FBI, Border Patrol and the Coast Guard would still stay open despite the financial woes.

The last government shutdown was also the longest in history.

Between December 2018 to January 2019 the US went through weeks of turmoil during Trump’s first term in the White House.

Republican House Speaker Mike Johnson said Trump was 'happy about the outcome'
Republican House Speaker Mike Johnson said Trump was ‘happy about the outcome’Credit: AP
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