US debt ceiling

Trump stops budget plan – risk of shutdown

Donald Trump is effectively stopping Congress' plan to prevent the US government from shutting down by Christmas, several media outlets report.

Trump is completely at odds with the negotiated plan and writes in capital letters in a joint statement with incoming Vice President JD Vance that Congressional Republicans must be "smart and tough."

The plan includes, among other things, raising the country's debt ceiling, something that Republicans have long opposed.

The announcement likely means that Congress members will have to sit down at the negotiating table again, with only a few days left until the Christmas break.

Analysis: "Welcome to the new Washington DC"

House Speaker Mike Johnson withdrew the negotiated plan that would have stopped a shutdown of federal institutions by Christmas. This after loud criticism from Donald Trump and Elon Musk.

“Welcome to the new Washington, D.C.,” writes CNN’s Stephen Collinson in an analysis.

According to him, the “sabotage” of Johnson’s funding plan caused shock and confusion in the corridors of Congress. But for many Trump supporters, the chaos itself is the point, writes Collinson.

“By challenging the Washington establishment even before taking office, Trump is showing that he is doing exactly what he promised during the election campaign,” writes Collinson.

Chad Pergram, senior political reporter at Fox News, also believes that this provides a glimpse into what will happen with Trump in power. He reminds us that Trump made a similar move in December 2019, which led to the longest shutdown in US history.

With the deadline set for Friday night, a shutdown looks increasingly likely and for Johnson, the future is uncertain, writes Pergram.

Congress has a new budget proposal on the table

The US Congress has a new proposal on the table to prevent government agencies from shutting down over Christmas, several media outlets report.

There was already a proposal on the table a day ago, but it didn't please Donald Trump and Elon Musk, who completely shot it down.

Donald Trump writes that the new plan includes a proposal that pauses the debt ceiling for two years.

"A very good deal for the American people," he writes on Truth Social.

According to Reuters, the new plan also includes investments in disaster relief and farmers.