U.S. lawmakers take high-stakes funding vote amid markets meltdown

US lawmakers geared up Tuesday for a crunch vote on a stopgap plan to avert a government shutdown that would pile more pain on the economic chaos marring President Donald Trump's early weeks in office.

Republicans have released a bill to keep the government funded through September 30 that would give Trump the summer months to steer his agenda of tax cuts, mass deportations and boosted energy production through Congress.

House Speaker Mike Johnson hopes to advance the legislation through the lower chamber in a late afternoon vote, with Senate approval envisioned before Friday night's midnight shutdown deadline.

It is a high-wire act for Johnson, who has to corral backbenchers who reliably vote against stopgaps -- known as continuing resolutions (CRs) -- because they mostly freeze spending rather than making cuts.

"We'll have the votes. We're going to pass the CR. We can do it on our own," a defiant Johnson told reporters at the US Capitol.

The threat of a weekend shutdown comes with Wall Street reeling under Trump's trade war and radical cuts to federal spending that have seen tens of thousands of layoffs.

Traders had initially reacted with optimism to the Republican billionaire's election, but growing fears that his tariffs will reignite inflation and spark a recession have led to a three-week market sell-off.

If Congress fails to act, there will be more economic misery as the government grinds to a halt, potentially leading to tens of thousands of public employees being sent home without pay as federal agencies shutter.

House Democratic leadership is whipping against the 99-page CR, which would drop domestic spending by about $13 billion from 2024 levels, while increasing defense spending by about $6 billion.

Republicans call the bill a "clean" CR but Democrats counter that it is full of partisan ideological add-ons that make it a non-starter.

Among the most contentious is a provision surrendering congressional authority to block Trump's tariffs, which were imposed under emergency economic powers, meaning any member can force a vote to terminate them.

- 'Mad king' -

There are cuts totaling billions of dollars from a program for veterans exposed to Agent Orange and toxic burn pits, as well as from research into medical conditions from cancer and Alzheimer's to heart disease.

There are also huge economies running to hundreds of millions of dollars in nuclear non-proliferation programs, rural broadband, food inspections, rent subsidies and election security funding.

Illinois Democrat Sean Casten accused Republicans of "strapping on the ball gag (and) climbing into Trump's dungeon."

"This is what you do to cower before a mad king," he posted on X. "It is not what you do if you are defending a constitutional democracy," he posted on X.

The latest funding fight comes with Trump pushing unprecedented federal firings as he begins unilaterally shrinking or shuttering agencies from USAID to the Department of Education.

The drive is being spearheaded by Trump aide Elon Musk, the world's richest person, who has enraged much of the country and Congress -- including Republican lawmakers -- with his seemingly haphazard approach.

AFP

Donald Trump's cost-cutting drive is being spearheaded by close aide Elon Musk (right), the world's richest person

While Musk enjoys Trump's confidence, polling shows he is deeply unpopular among ordinary Americans, and his cuts have sparked angry confrontations between Republicans and their constituents at town halls.

The White House has been marshaling its top officials -- from Chief of Staff Susie Wiles and Vice President JD Vance to Trump himself -- to work the phones and meet would-be dissidents in person.

Congress needs a CR because it is so evenly split that it has been unable to approve the 12 separate bills that allocate full 2025 budgets for various federal agencies.

But Johnson's tiny 218-214 majority means he cannot afford much dissent -- two of his lawmakers switching sides would tank the bill if Democrats put up a united front.

He is already dealing with one confirmed "no" vote -- fiscal conservative Thomas Massie -- and Trump vowed Monday to unseat the Kentucky congressman in the midterm elections.

In the Senate, Republicans look likely to need help from around eight Democrats, with Pennsylvania's John Fetterman already indicating he is willing to cross the aisle.