Here’s what conservatives need to know.
As the clock ticked down to the deadline, House Democrats were quick to claim victory for “the American people” after passing a continuing resolution (CR) on Friday night, narrowly avoiding a government shutdown. The bill, which funds the government until mid-March 2025, was a critical measure to keep the country running but notably excluded any provisions to raise or eliminate the debt ceiling. This decision was applauded by Democrats, who criticized calls from former President Donald Trump and billionaire Elon Musk to tie the debt ceiling increase to the spending deal.
Earlier in the week, Trump and his running mate, Vice President-elect J.D. Vance, had made their position clear: they preferred to delay a debt ceiling increase until the Biden administration was out of office. “Increasing the debt ceiling is not ideal, but it’s better done on Biden’s watch,” Trump stated on X (formerly Twitter).
While the debt ceiling debate is important to ensure the federal government can meet its obligations, many Republicans, including fiscal conservatives, worry about raising it without any corresponding cuts to government spending. The debt ceiling currently stands suspended until January 2025, under legislation passed earlier this year. However, Trump’s vision is to push for significant fiscal reforms before he takes office, as he remarked with Vance, “If the left will not work with us on the debt ceiling now, what makes anyone believe they are going to during our administration?”
Despite Trump’s calls to delay any action on the debt ceiling, House Speaker Mike Johnson, a Louisiana Republican, worked to bring an amended bill to the floor that would have suspended the debt ceiling for two years. Supported by Trump and Musk, this version, however, failed to gain Democratic support and was blocked by 38 Republicans who joined Democrats in opposing it.
Meanwhile, Democrats, led by House Minority Leader Hakeem Jeffries, celebrated the CR’s passage, accusing Republicans and their billionaire backers of trying to exploit the situation to slash entitlement programs like Social Security and Medicare, while handing massive tax cuts to the wealthy. “This is a victory for the American people,” Jeffries declared. “We stopped the billionaire boys club from gaining a $4 trillion blank check.”
Trump, however, wasn’t deterred by the Democratic triumph. Speaker Johnson, in an interview after the CR passed, mentioned he had been in constant communication with Trump throughout the process. “He knew exactly what we were doing and why. This is a good outcome for the country,” Johnson said, hinting at a strategic long-term plan for dealing with the debt ceiling once Republicans regain full control.
The CR, which also included $100 billion in disaster aid and $10 billion in relief for farmers, passed the House with overwhelming support—366 votes in favor and just 34 against. It later cleared the Senate and is now on President Joe Biden’s desk for final approval.
For Republicans, the fight over the debt ceiling and future fiscal reforms is far from over. As Trump and Musk continue to wield influence, many GOP leaders are preparing for a more aggressive showdown once they’re back in power, with hopes of taking a stronger stance on government spending and debt.