US President Joe Biden signed a funding bill on Saturday, averting a Christmastime government shutdown after negotiations in Congress went down to the wire overnight.Last-minute legislative wrangling was brought about by President-elect Donald Trump, who along with influential billionaire Elon Musk, pressured Republicans to abandon an earlier bipartisan funding compromise.Lawmakers then spent several days trying to hammer out another deal, with massive halts to government services hanging in the balance.With the Friday midnight deadline already expired by minutes, senators dropped normal procedure to fast-track the new package to a vote, funding the government to mid-March.“This agreement represents a compromise, which means neither side got everything it wanted,” Biden said in a statement. “But it rejects the accelerated pathway to a tax cut for billionaires that Republicans sought.”The Democrats run the Senate, so there was never much doubt that the new funding package would get a rubber stamp after the party was crucial in helping the Republican majority in the House pass the bill earlier in the day.However, with senators often dragging their feet over complex legislation, there were fears that the funding fight might spill into next week.That would have meant non-essential operations winding up, with up to 875,000 workers furloughed and as many as 1.4mn more required to work without pay.Congress’s setting of government budgets is always a fraught task, with both chambers closely divided between Republicans and Democrats.Trump and Musk, his incoming “efficiency czar”, created much of the drama this time around by pressuring Republicans in an 11th hour intervention to renege on a funding bill they had painstakingly agreed with Democrats.Two subsequent efforts to find compromise fell short, leaving Republican House Speaker Mike Johnson at the last chance saloon as he spent much of the day on Friday huddling with aides to find a way to keep government agencies running.If the funding bill had failed, non-essential government functions would have been put on ice.Employees in key services like law enforcement would have continued working but would only have been paid once government functions were back up.Many parks, monuments and national sites would have closed at a time when millions of visitors are expected.Lawmakers avoided all that holiday-season pain by funding the government until March 14 in a package that includes $110bn in disaster aid and financial relief for farmers.Congress did not act on Trump’s demand to raise the debt ceiling, a politically difficult task, before he takes office on January 20.The federal government spent roughly $6.2tn last year and has more than $36tn in debt, and Congress will need to act to authorise further borrowing by the middle of next year.However, stripped from the original funding bill were pharmaceutical reforms, congressional pay raises and tightened restrictions on US investments in China – the removal of which some Democrats tied directly to Musk, the chief executive of Tesla.“Musk’s ties to China and Tesla’s significant investments in the country raise significant questions as to why he urged House Republican leadership walking away” from the original bipartisan deal, Representative Rosa DeLauro said in a letter to congressional leadership.The influence of Musk, the world’s richest man, over the Republicans – and his apparent sway with Trump – has become a focus for Democratic attack, with questions raised over how an unelected citizen can wield so much power.There is growing anger even among Republicans over Musk’s interference after he trashed the original funding agreement in a blizzard of posts – many of them wildly inaccurate – on his social media platform X.“Last time I checked, Elon Musk doesn’t have a vote in Congress,” Georgia House Republican Rich McCormick told CNN. “Now, he has influence, and he’ll put pressure on us to do whatever he thinks the right thing is for him. But I have 760,000 people that voted for me to do the right thing for them.”Trump had been clear that he was willing to see a shutdown if he did not get his way, and the passage of funding legislation without his priorities included demonstrated that even his great influence over Republicans in Congress has limits.A travel industry trade group warned that a government shutdown could cost airlines, hotels and other companies $1bn per week and lead to widespread disruptions during the busy Christmas season.Authorities warned that travellers could face long lines at airports.However, Johnson put a positive sheen on events, telling reporters after the House passed the funding package that January, when Trump returns to office, would mark a “sea change” in Washington.“President Trump will return to DC and to the White House, and we will have Republican control of the Senate and the House,” Johnson told journalists, adding: “Things are going to be very different around here.”The federal government last shut down for 35 days during Trump’s first White House term over a dispute about border security.Previous fights over the debt ceiling have spooked financial markets, as a US government default would send credit shocks around the world.
