The U.S. Senate has passed a budget bill, narrowly avoiding what could have been the first federal government shutdown since 2019. The legislation, approved by an 85-11 margin, follows the House of Representatives' earlier approval and now heads to President Joe Biden for his signature, according to BBC.

Key Highlights of the Budget Deal:

  • The bill excludes President-elect Donald Trump’s demand to raise the federal borrowing limit, showcasing limits to his influence over Republican lawmakers.

  • Includes $100 billion for disaster relief and $10 billion in aid for farmers.

  • Strips provisions from earlier drafts, such as pay raises for lawmakers, healthcare reforms, and funding for infrastructure projects like the Baltimore bridge.

Without this deal, millions of federal employees could have faced unpaid leave or worked without pay, with public services and assistance programs severely disrupted. The last government shutdown in 2019 lasted 35 days, the longest in U.S. history.

Behind-the-Scenes Negotiations

The legislation faced significant hurdles as it underwent intense scrutiny and revisions. The 118-page "American Relief Act, 2025" saw opposition from Trump and Elon Musk, who urged Republicans to reject earlier versions. Despite Musk’s lobbying, key Democratic provisions and Trump’s debt-limit demands were excluded from the final version.

Political Dynamics

Speaker of the House Mike Johnson faced criticism from his own party over his handling of the process but expressed gratitude after the bill’s passage, calling it a setup for a "big and important new start" in January. He credited frequent communication with Trump and Musk during the negotiations for the bill’s eventual approval.

Musk, who has been tapped by Trump to focus on government spending reductions, praised Johnson's leadership, describing the final bill as significantly streamlined compared to earlier drafts.

Implications for the Future

The intense negotiations signal potential legislative challenges ahead, with Republicans set to take control of both chambers of Congress in January. As Speaker Johnson and President-elect Trump prepare for their next term, the budget fight offers a glimpse of the tense policy battles to come.