House Republicans have backed a new funding proposal supported by President-elect Donald Trump to prevent a looming government shutdown.
The American Relief Act of 2024 aims to keep the government running while addressing key priorities like disaster relief and the national debt ceiling.
The proposed legislation would extend current government funding through March 14 and suspend the debt ceiling for two years, aligning with Trump’s demands. It also includes $110 billion in disaster relief for communities affected by hurricanes Helene and Milton, financial support for farmers, and certain health care provisions.
However, reforms to the Pharmacy Benefit Managers (PBMs) system, a divisive issue among lawmakers, were excluded from the final draft.
Trump expressed strong support for the proposal, calling it a significant step forward for the nation.
“Speaker Mike Johnson and the House have come to a very good deal for the American people,” he said in a statement, urging Republicans and Democrats to vote for the bill. “The newly agreed-to American Relief Act of 2024 will keep the government open, fund our great farmers and others, and provide relief for those severely impacted by the devastating hurricanes.”
The new bill replaces an earlier 1,547-page bipartisan funding proposal that faced significant opposition from Trump and conservative Republicans. The initial package, which included provisions for revitalizing RFK Stadium in Washington, D.C., and permits for ethanol fuel sales, was criticized for containing unrelated measures and excessive spending.
Conservative leaders, including Elon Musk and Vivek Ramaswamy, played a prominent role in derailing the original plan, voicing their opposition on social media and calling for a more focused and fiscally responsible approach.
Despite the progress made with the new proposal, it faces hurdles in securing widespread support.
GOP hardliners, such as Rep. Chip Roy of Texas, have criticized the bill for lacking sufficient spending cuts and raising the debt ceiling without fiscal restraint. Roy described the plan as a “HARD NO,” reflecting the resistance among some Republican lawmakers.
Democratic opposition also remains strong.
House Minority Leader Hakeem Jeffries dismissed the proposal as unserious and criticized it as a product of “extreme MAGA Republicans.” Democrats would not back the bill, he underlined, especially since it included a suspension of the debt ceiling.
President Joe Biden and his administration have echoed similar sentiments, accusing Republicans of abandoning bipartisan agreements in favor of last-minute concessions to conservative priorities.
The American Relief Act of 2024 comes amid growing concerns over the national debt, which recently exceeded $36 trillion. The proposed suspension of the debt ceiling through 2027 would address a looming fiscal challenge but has sparked debate over the best approach to managing government spending. Trump and his allies argue that pairing a debt ceiling increase with funding measures is essential to prevent economic instability and maintain critical government services.
With just hours remaining before a potential shutdown, House Speaker Mike Johnson faces mounting pressure to bring the bill to the floor for a vote. The outcome remains uncertain as lawmakers on both sides weigh the political and economic implications of the proposal.
If passed, the legislation would temporarily resolve the immediate funding crisis and provide relief to disaster-stricken communities. However, it would also set the stage for broader debates over fiscal policy and government spending in the months to come.