Biden signs funding bill into law, averting US government shutdown

United States President Joe Biden has signed into law a bipartisan funding bill that averts a government shutdown, days after Congress was thrown into turmoil after President-elect Donald Trump rejected an initial deal.

The White House announced on Saturday that Biden had signed the legislation, which funds the government through mid-March.

“This agreement represents a compromise, which means neither side got everything it wanted. But it rejects the accelerated pathway to a tax cut for billionaires that Republicans sought, and it ensures the government can continue to operate at full capacity,” Biden, a Democrat, said in a statement.

“That’s good news for the American people, especially as families gather to celebrate this holiday season.”

The Democratic-controlled Senate, in an 85-11 vote, passed the bill to continue government funding 38 minutes after it expired at midnight (05:00 GMT) in Washington, DC, on Saturday.

The budget bill had cleared the Republican-controlled House of Representatives earlier on Friday evening with bipartisan support.

Saturday’s signing caps a tumultuous week in the US Congress after Trump, who takes office in January, and his adviser, Tesla CEO Elon Musk, raised opposition to the initial bipartisan agreement.

Trump had insisted the deal include an increase in the government’s borrowing limit. If not, he said, let the government shutdown “start now”.

Lawmakers spent several days trying to hammer out another deal, with massive halts to government services hanging in the balance during the year-end holiday season.

A shutdown would have meant nonessential operations shuttering, with up to 875,000 workers furloughed and as many as 1.4 million more required to work without pay.

The final version of the legislation funds the government at current levels through March 14. It also provides $100bn in disaster aid as well as $10bn in assistance to farmers.

But the deal stripped out some provisions championed by Democrats, who accused Republicans of caving in to pressure from an unelected billionaire — Musk — who has no experience in government.

Some Republicans voted against the package because it did not cut spending.