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Home Breaking News

Trump wants debt ceiling in the budget deal. If not, he says let the government shutdown start now

by DigestWire member
December 20, 2024
in Breaking News, World
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Trump wants debt ceiling in the budget deal. If not, he says let the government shutdown start now
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WASHINGTON (AP) — Hours before the start of a federal government shutdown, President-elect Donald Trump doubled-down Friday on his insistence that a debt ceiling increase be included in any deal — and if not, let the closures “start now.”

Trump, who is not yet even sworn into the White House, issued his latest demand as House Speaker Mike Johnson arrived early at the Capitol, instantly holing up with some of the most conservative Republicans in the House Freedom Caucus who helped sink Trump’s bill in a spectacular Thursday evening flop. The clock is now racing toward the midnight deadline to fund government operations.

“ff there is going to be a shutdown of government, let it begin now,” Trump posted on social media.

Trump does not fear government shutdowns the way Johnson and the lawmakers see federal closures as political losers that harm the livelihoods of Americans. The incoming Trump administration vows to slash the federal budget and fire thousands of employees. Trump himself sparked the longest government shutdown in history in his first term at the White House, the monthlong closures over the 2018-19 Christmas holiday and New Year period.

More importantly for the president-elect is his demand for pushing the thorny debt ceiling debate off the table before he returns to the White House. The federal debt limit expires Jan. 1, and Trump doesn’t want the first months of his new administration saddled with tough negotiations in Congress to lift the nation’s borrowing capacity. It gives Democrats, who will be in the minority next year, leverage.

House Republicans were quickly cobbling together a new plan, which could involve splitting up the previous efforts — government funding, disaster and agricultural aid into separate votes — with debt ceiling potentially later. They were preparing to meet privately during the lunch hour to discuss next steps, with a shutdown 12 hours away.

“Congress must get rid of, or extend out to, perhaps, 2029, the ridiculous Debt Ceiling,” Trump posted — increasing his demand for a now five-year debt limit increase. “Without this, we should never make a deal.”

Johnson is racing behind closed doors to prevent a shutdown, but his influence has its limits. Trump, and billionaire ally Elon Musk, unleashed their opposition — and social media army — on the first plan Johnson presented, which was a 1,500-page bipartisan compromise he struck with Democrats that included $100 billion in disaster aid for hard hit states, but did not address the debt ceiling situation.

A Trump-backed second plan, Thursday’s slimmed down 116-page bill with his preferred two-year debt limit increase into 2027, failed in a monumental defeat, rejected in an evening vote by most Democrats as an unserious effort — but also some three dozen Republicans who refuse to pile on the nation’s red ink.

On Friday morning, Vice President-elect JD Vance arrived early at the speaker’s office at the Capitol, where a group of the most hardline Republican holdouts were meeting with Johnson. The speaker has insisted on finding a way forward.

Government workers have already been told to prepare for a federal shutdown which would send millions of employees — and members of the military — into the holiday season without paychecks.

“Welcome back to the MAGA swamp,” the House Democratic Leader Hakeem Jeffries posted.

“That is why our country is on the brink of a government shutdown that will crash the economy, hurt working class Americans and likely be the longest in history.”

Jeffries was communicating with Johnson on the path forward, according to multiple people in a closed-door Democratic Caucus meeting. But there was no discussion in the meeting on whether a deal is being discussed or the details of legislation.

In the Senate, which is controlled by the Democrats for a few more weeks, there are talks of trying to push forward the original package, the bipartisan compromise that Johnson, Jeffries and the Senate leaders had negotiated to strike a deal earlier this week. That would be difficult, but not impossible.

Senate Majority Leader Chuck Schumer called the original agreement “the quickest, simplest, and easiest way we can make sure the government stays open while delivering critical emergency aid to the American people.”

“I’m ready to stay here through Christmas because we’re not going to let Elon Musk run the government,” said Sen. Patty Murray, D-Wash., the chair of the Appropriations Committee who was instrumental in that first deal. “We had a bipartisan deal—we should stick to it.”

President Joe Biden, in his final weeks in office, has played a less public role in the debate, drawing criticism from Trump and Republicans who are trying to shift the blame for any shutdown on him.

Johnson faces an enormous task as he tries to keep government running, appease Trump — and save his own job.

The speaker’s election is the first vote of the new Congress, which convenes Jan. 3, and Johnson will need the support of almost every single House Republican from his razor-thin majority to ensure he can keep the gavel. Democrats will vote for Jeffries.

As the speaker twisted Thursday in Washington, his peril was on display. At Turning Point USA’s conservative AmericaFest confab, Trump ally Steven Bannon stirred thousands of activists with a withering takedown of the Louisiana Republican.

“Clearly, Johnson is not up to the task. He’s gotta go,” Bannon said, drawing cheers. He smiled and cocked his head at the response, “President Trump? These are your people.”

Outside the speaker’s office, next steps were uncertain.

Rep. Bob Good, R-Va., a former Freedom Caucus chairman, came out and said that he would be surprised if there was a vote Friday on any path forward. Moments later, GOP Rep. Lauren Boebert said that Republicans were making progress and having Vance in the room is helping move things toward a resolution.

“I think President Trump was possibly, sold a bad bill yesterday,” the Colorado lawmaker said. “I did not want to see a failure on the House floor for the first demand that President Trump is making.”

___

Associated Press writers Kevin Freking, Stephen Groves, Mary Clare Jalonick and Bill Barrow contributed to this report.

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