Actually, there was already a bipartisan solution to the US budget dispute. But now Trump is blocking this compromise – apparently on the advice of Elon Musk. The Democrats accuse him of egotism.
There is chaos on Capitol Hill in Washington: A budget bill supported by President-elect Donald Trump failed with 174 votes to 235 in Congress. “We're coming up with a new solution,” said Mike Johnson, the Republican speaker of the House of Representatives, optimistically.
But time is running out. The MPs have to agree on a new budget draft by midnight local time – six a.m. German time. Otherwise there is a risk that the government will come to a standstill. Congress had actually already routinely agreed on a bipartisan compromise for an interim budget until March 2025.
Trump blocks compromise
But then Donald Trump and Elon Musk intervened: Trump stopped the finished compromise proposal and called for the debt ceiling to be lifted. On Truth Social he wrote: “Congress needs to abolish the ridiculous debt ceiling or extend it until perhaps 2029.” His advisor, the tech billionaire Musk, advised him to do so.
The Democrats reacted outraged. Senator Elisabeth Warren angrily said on CNN that Republicans would rather have a crisis than agree to the bipartisan compromise proposal. Because they all do exactly what the great and powerful Mr. Musk wants.
Disguised tax cut for the super rich?
The Democrats believe that Trump's favored budget proposal is a cover for a tax cut that would primarily benefit rich people like Musk. They also don't want the US to be burdened with trillions of dollars in additional debt. Interestingly, in addition to the Democrats, 38 Republican members of Congress also voted against the Trump proposal.
A further draft budget should be voted on as quickly as possible. Republican Congressman Dusty Johnson of South Dakota spoke on CNN in favor of Trump personally coming to Washington to mediate. He said the incoming president has a clear opinion about what should be included in the draft. He is a brilliant guy. He is often a disruptive force – but that is a good thing.
Salaries for civil servants no longer paid out
In order to prevent a shutdown, the Senate must also approve the law. The incumbent US President Joe Biden must sign the legal text before midnight local time. If this does not happen, government business will come to a standstill. Then millions of state employees would not be paid for the time being.