If Congress fails to act and approve the spending bill by Saturday, the US government will run out of funds to maintain operations

Republicans in Congress met on Thursday to strategize after President-elect Donald Trump rejected a bipartisan agreement to prevent a partial government shutdown and insisted on abolishing the federal debt ceiling.

Without a deal passing both the Republican-led House of Representatives and the Democrat-controlled Senate, the U.S. government faces a partial shutdown starting Saturday. This would disrupt funding for essential services like air travel and law enforcement, while over 2 million federal employees would face delayed paychecks. Critical programs, such as Social Security payments, would continue unaffected.

Trump remained firm, calling for the debt ceiling to be eliminated entirely, arguing that the growing federal debt—currently at $36 trillion—cannot be constrained by outdated limits.

"The debt ceiling should be thrown out entirely," Trump stated, emphasizing his position.

Debt ceiling standoffs in the past have rattled financial markets, as the potential for a U.S. default carries global economic risks. While the current debt limit suspension expires on Jan. 1, Congress likely won’t need to address the issue until spring.

One of Trump's key priorities when he assumes office on Jan. 20 will be extending tax cuts projected to reduce federal revenue by $8 trillion over the next decade, which could increase the national debt unless paired with significant spending reductions. Trump has pledged not to cut senior benefits like Social Security and Medicare, which constitute a large and growing portion of the federal budget.

Congressional Reactions

Republican leaders, including House Speaker Mike Johnson, offered few specifics following their discussions.

"The situation is still fluid," said Representative Tom Emmer, the House Majority Whip.

Democratic House Minority Leader Hakeem Jeffries criticized the GOP response, saying, "This is a moment to prioritize the American people over partisan games, not about satisfying the incoming administration or the wealthiest Americans."

Calls for Delay

Some Republicans proposed allowing the government to remain closed until Trump’s inauguration on Jan. 20, when Republicans will control both chambers of Congress.

Representative Nancy Mace argued, "Let’s hold off until Jan. 20. This isn’t the catastrophic shutdown the media portrays."

Meanwhile, Democrats expressed little interest in renegotiating their bipartisan deal to accommodate Trump and his ally, Elon Musk. The billionaire has committed to cutting $2 trillion from the $6.2 trillion federal budget and criticized the current proposal.

The bipartisan agreement on the table would maintain government funding at current levels, allocate $100 billion for disaster relief, and provide $10 billion in farm aid. It also included provisions like pay raises for lawmakers and a crackdown on hidden hotel fees.

Impact of a Shutdown

A shutdown would delay relief for those affected by recent natural disasters, including Hurricanes Milton and Helene. In Vermont, towns are still waiting for funds to repair bridges and roads damaged by storms in 2023 and 2024. Farmers whose crops were destroyed risk going out of business without immediate assistance, Democratic Senator Peter Welch warned.

The political unrest has also put Speaker Johnson’s leadership at risk. Johnson, who became speaker after the party’s hard-right faction ousted Kevin McCarthy over a funding dispute, has frequently relied on Democratic support to pass legislation when unable to secure enough votes within his own party.