New budget proposal reflecting Trump’s demand rejected

New budget proposal reflecting Trump’s demand rejected. December. 21, 2024 07:39. by Jeong-Soo Hong hong@donga.com.
With one month remaining until President-elect Donald Trump’s inauguration, tensions are escalating between Democrats and Republicans over a temporary budget bill supported by Trump. If the two parties fail to reach an agreement by the budget deadline (midnight on Saturday, local time), a partial shutdown of the U.S. federal government will be unavoidable. This could also significantly disrupt preparations for the presidential inauguration, which requires the highest level of security.

On Thursday, the Republican-controlled House of Representatives voted down the temporary budget bill, the "American Relief Act," with 174 votes in favor and 235 against in the 435-member chamber. All but two Democratic lawmakers voted against the bill, while 38 Republicans also broke ranks to oppose it.

President-elect Trump strongly criticized the existing budget plan that House Speaker Mike Johnson, a Republican, had negotiated with Democrats, calling for a new budget proposal. In response, Republicans hastily drafted a new budget on the day of the vote, which included provisions such as suspension of the federal debt ceiling for two years, $100 billion in disaster relief funding, and $10 billion in aid for farmers. However, the bill failed to pass.

Trump, who has previously advocated for a "small government" and fiscal responsibility, had been supportive of the federal debt ceiling, which has been in place since 1917 as a measure of financial discipline. However, to implement major policies of his second administration, such as border security and tax cuts, which require substantial funding, he demanded that the debt ceiling be abolished or raised under the Biden administration, not under the Trump administration, pressuring for the creation of a new budget plan.

Trump’s actions prompted criticism from Democratic lawmakers, who argued that “the president-elect is excessively interfering in a bipartisan budget agreement.” Meanwhile, many hardline Republicans, traditionally critical of budget deficits, also opposed the new bill.