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Congress Passes $110 Billion Disaster Aid Bill, Avoids Government Shutdown

Congress passes a $110 billion disaster aid bill, averting a government shutdown. Learn how Trump and Musk influenced last-minute changes to the funding patch.

Senate Democratic Leader Chuck Schumer (D-N.Y.) flashes two thumbs up as he emerges from the Senate chamber at the start of a vote series during which the Senate voted on a continuing resolution to avert a government shutdown at the U.S. Capitol, on Dec. 20, 2024. | Francis Chung/POLITICO

In a dramatic conclusion to the 118th Congress, the Senate approved a funding patch early Saturday, securing over $110 billion in disaster aid and averting a government shutdown. The bill, which had already passed the House on Friday evening, extends government funding through March 14 and includes key provisions for disaster relief and agriculture policy.

A Tumultuous Week on Capitol Hill

The passage came after a week of intense negotiations, marked by the influence of President-elect Donald Trump and tech billionaire Elon Musk, who pressured Speaker Mike Johnson to revise an earlier bipartisan deal. The changes omitted key policies, including restrictions on U.S. investments in China, stricter event ticket advertising rules, and reforms to pharmacy benefit managers aimed at reducing prescription drug costs.

Despite these removals, Johnson secured enough support to push the bill forward. While some lawmakers expressed frustration over the influence of Trump and Musk, others emphasized the necessity of avoiding a shutdown.

Disaster Aid at the Forefront

The bill allocates significant funds for disaster recovery, including:

  • Emergency aid for communities impacted by Hurricanes Helene and Milton.
  • Refilling the Small Business Administration’s disaster loan program, which had paused lending after running out of funds in October.

Sen. Thom Tillis (R-N.C.) praised the bill for delivering much-needed assistance, despite his earlier efforts to pass standalone disaster aid legislation being blocked. “This is a big lift,” Tillis said.

Frustrations Over Removed Policies

Lawmakers from both parties criticized the exclusion of key provisions:

  • E-15 gasoline sales: A priority for corn-growing regions, its omission disappointed Sen. Joni Ernst (R-Iowa).
  • Revenge porn restrictions: Sen. Ted Cruz (R-Texas) denied any link between the provision’s removal and the involvement of Musk, who owns a social media platform.
  • Pharmacy benefit manager reforms: Sen. Josh Hawley (R-Mo.) lamented that the pharmaceutical industry’s lobbying led to the policy being dropped.

A Narrow Path Forward

While the bill provides a temporary funding solution, the March 14 deadline will arrive with the Trump administration fully involved in shaping the fiscal 2025 budget. This measure ensures government operations continue at current funding levels, providing a bridge for both defense and non-defense agencies.

Senate Majority Leader Chuck Schumer and Minority Leader Mitch McConnell praised the final agreement for averting a shutdown while addressing urgent disaster needs.

Looking Ahead

As the 118th Congress concludes, lawmakers anticipate a challenging road ahead in balancing fiscal responsibility with political pressures. For now, the bill’s passage marks a critical step in ensuring aid reaches disaster survivors and government operations remain uninterrupted.

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