The plan was rejected because it failed to gain support from both Democrats and conservative Republicans. Conservative Republicans opposed the suspension of the federal debt limit for two years, while Democrats had their own reservations. Additionally, President-elect Trump and Elon Musk publicly criticized the bill, further undermining its chances.
Elon Musk heavily criticized the bill on social media, calling it wasteful and urging lawmakers to vote against it. His influence, combined with his status as the richest man in the world and a major political donor, swayed President-elect Trump to also oppose the bill, contributing to its defeat.
If no congressional action is taken, the government will face a shutdown starting Friday night. This could lead to the suspension of non-essential government services and unpaid employees. A prolonged shutdown would have significant economic and operational impacts, though a short-term lapse over the weekend might have minimal immediate effects.
The suspension of the federal debt limit for two years was a major sticking point. President-elect Trump wanted to avoid raising the debt limit during his presidency, preferring it to be handled under Biden's administration. Conservative Republicans generally oppose raising the debt limit, which further complicated the bill's passage.
Elon Musk's influence stems from his role as one of Trump's key advisors, his status as the richest man in the world, and his position as the largest political donor in the U.S. His financial power and advisory role give him significant leverage over political decisions, particularly within the Republican Party.
There is a possibility that Congress could pass a temporary patch to extend government funding, potentially into the next year. However, this depends on negotiations and whether President-elect Trump and conservative Republicans are willing to compromise. The situation remains uncertain as the deadline approaches.
The Republican-led House rejected a temporary funding plan backed by President-elect Donald Trump on Thursday with just over 24 hours to go before a US government shutdown, capping an extraordinary two days in Washington that tested the limits of the incoming president’s power. For instant reaction and analysis, host Doug Krizner spoke with Bloomberg Capitol Influence deputy team leader Mike Dorning.
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