Budget Deal Passes Without Trump’s Key Debt Limit Increase

Budget Deal Passes Without Trump’s Key Debt Limit Increase \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ Donald Trump’s efforts to influence a pre-Christmas budget deal fell flat as lawmakers rejected his demands for a debt limit increase, passing a slimmed-down funding bill early Saturday. Despite threatening shutdowns and primary challenges, the president-elect failed to unify Republicans, signaling potential conflicts in his second term. The bill’s passage highlights the challenges Trump faces in shaping legislative priorities amid intraparty divisions.

Trump’s Budget Fight Ends with Mixed Results: Quick Looks

• Budget Passed: A slimmed-down funding bill was approved Saturday morning, avoiding a shutdown.
• Debt Limit Excluded: Trump’s central demand for a debt ceiling hike was left out of the final deal.
• GOP Divisions: Thirty-eight House Republicans defied Trump’s push to include the debt increase.
• Key Omissions: The bill omitted controversial measures like congressional pay raises.
• Trump’s Silence: After days of vocal criticism, Trump offered no reaction to the bill’s passage.
• Historical Echoes: The standoff recalls Trump’s first-term government shutdowns and brinkmanship.
• Future Battles: Trump faces challenges on spending cuts, tariffs, and tax reform in his second term.
• Biden’s Signature: President Joe Biden signed the bill, emphasizing bipartisan compromise.

Deep Look

Donald Trump entered a high-stakes budget fight in the weeks before his second inauguration, demanding changes to a bipartisan deal to fund the government through March. Despite days of ultimatums, including threats of a government shutdown, the president-elect failed to secure his most ambitious demand: a long-term increase to the federal debt limit. Early Saturday, lawmakers passed a slimmed-down version of the bill, averting a shutdown but leaving Trump with little to show for his efforts.

The funding fight, reminiscent of Trump’s turbulent first term, signals that his return to power may bring more of the same: intraparty clashes, brinkmanship, and a focus on disruption over deal-making.

Trump’s Demands and GOP Resistance

At the center of Trump’s demands was the debt ceiling, a statutory limit on the government’s borrowing capacity. Trump argued that raising the debt ceiling through 2027—or even 2029—was essential to avoid contentious fiscal debates during his presidency. His demands shifted over several days, starting with a call to eliminate the debt limit entirely.

In response, Trump pressured Republican lawmakers to abandon their bipartisan agreement with Democrats and adopt his plan. He warned that failure to comply would lead to political consequences, including primary challenges for dissenters. On his social media platform Truth Social, he attacked Rep. Chip Roy of Texas by name, calling him an obstructionist.

Despite Trump’s rhetoric, his efforts failed to sway enough Republicans. Thirty-eight House Republicans voted against a version of the bill that included a debt ceiling increase. The final agreement omitted the provision altogether, marking a rare rebuke of Trump’s leadership within his party.

Final Deal and Omissions

The continuing resolution passed Saturday morning funds the federal government through March and excludes controversial items such as a pay raise for members of Congress. Supporters of the bill, including House Speaker Mike Johnson, presented it as a partial win, emphasizing its focus on fiscal responsibility.

Johnson claimed to have been in “constant contact” with Trump during negotiations, adding that the president-elect was “certainly happy about this outcome.” However, Trump offered no public comment on the final vote, a sharp departure from his earlier barrage of social media posts. Instead, he spent Friday golfing at his resort in Florida.

Historical Echoes of Trump’s First Term

The budget battle evoked memories of Trump’s first term, when a standoff over funding for his U.S.-Mexico border wall led to a 35-day government shutdown—the longest in U.S. history. That episode proved to be a political low point for Trump, with a majority of Americans blaming him for the impasse.

As in his first term, Trump’s approach to the budget fight showcased his willingness to use brinkmanship to achieve his goals. However, it also underscored his challenges in building coalitions within his party, especially on contentious fiscal issues like debt and spending.

Challenges Ahead in Trump’s Second Term

The spending fight offered a preview of the challenges Trump is likely to face in advancing his ambitious second-term agenda. His priorities include extending the 2017 tax cuts, reducing the size of government, introducing aggressive new tariffs, and implementing tax breaks for U.S.-based companies. Each of these initiatives will require congressional approval, and Trump’s influence may be tested further as lawmakers grapple with the nation’s growing debt.

Many conservatives in the House view reducing the federal deficit as a top priority, a stance that could clash with Trump’s push for tax cuts and increased tariffs. “Reducing spending has never been a campaign promise of Trump, but it’s a big priority for House Republicans,” said Rep. Dan Crenshaw of Texas.

In addition to fiscal debates, Trump faces opposition over his controversial Cabinet picks, including anti-vaccine advocate Robert F. Kennedy Jr. as health secretary and Fox News host Pete Hegseth as defense secretary. Both nominations are likely to provoke contentious confirmation battles in the Senate.

Elon Musk’s Expanding Role

Billionaire entrepreneur Elon Musk played a prominent role in the budget negotiations, using his social media platform to criticize the original bipartisan deal as excessive spending. Musk, a close Trump confidant, is set to lead the newly established Department of Government Efficiency (DOGE) in the president-elect’s administration.

Karoline Leavitt, a spokesperson for Trump, credited Musk with helping to slim down the bill, describing it as a victory against “Democrat pork and waste.” She promised that Trump and Musk would “cut the waste out of Washington, one bill at a time.”

Democrats and Biden Respond

While Trump allies framed the outcome as a partial win, Democrats cast the president-elect as a disruptive force who ultimately failed to achieve his goals. President Joe Biden signed the legislation Saturday, emphasizing its bipartisan nature.

“This agreement represents a compromise, which means neither side got everything it wanted,” Biden said in a statement. He highlighted the exclusion of “an accelerated pathway to tax cuts for billionaires” as a key victory for Democrats.

Outlook for Trump’s Legislative Agenda

The budget showdown highlights Trump’s ongoing struggle to unify his party and secure legislative victories. With razor-thin Republican majorities in both chambers, he faces an uphill battle to pass sweeping reforms.

For Trump’s supporters, however, disruption remains a key part of his appeal. According to AP VoteCast, 37% of Trump voters in the recent election said they wanted “complete and total upheaval,” while 56% sought “substantial change.”

As Trump enters his second term, the budget battle may be a prelude to the infighting, chaos, and brinkmanship that defined his first four years in office.

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