Senate passes bill to prevent government shutdown, sending it to President Biden

The U.S. Senate on Saturday voted to pass a spending bill that will fund the government through mid-March and avoid a shutdown. The legislation now goes to President Joe Biden for his signature.

The Senate vote wrapped up what has been a chaotic funding process involving multiple rejections and a looming shutdown threat. The latest spending plan extends the farm bill, offers additional aid to farmers and provides disaster relief to hurricane victims.

The Senate passed the bill with a vote of 85-11 in the wee hours of Saturday morning. It had first cleared the U.S. House on Friday evening with a count of 366-34.

“A government shutdown heading into the holidays would mean service members and air traffic controllers go to work without pay, essential government services for hardworking Americans would be paused, and economic disruption would occur,” White House Press Secretary Karine Jean-Pierre said in a statement on Friday.

“While (the revised legislation) does not include everything we sought, it includes disaster relief that the President requested for the communities recovering from the storm, eliminates the accelerated pathway to a tax cut for billionaires, and would ensure that the government can continue to operate at full capacity,” Jean-Pierre added.

Earlier this week, a bipartisan bill that would have extended funding to mid-March was torpedoed by President-elect Donald Trump and was blasted by Tesla (TSLA) top boss Elon Musk on his X platform on Wednesday. Recall, Musk has been appointed to head up the new Department of Government Efficiency.

Then, on Thursday, U.S. House Speaker Mike Johnson offered up a slimmed-down version of the bill that included an extension of the debt ceiling through early 2027. Despite being backed by Trump, nearly 40 Republicans also joined in with Democrats in rejecting it. Following the failed vote, Trump urged for a government shutdown to begin “now, under the Biden Administration.”

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• God Bless America ETF (YALL)
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More on the U.S. government

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• Trump and Warren agree on one thing – end the debt ceiling
• How Would A Government Shutdown Affect Market Volatility?
• Equity Markets Mostly Ignore A Government Shutdown