Debt Ceiling Drama: U.S. Congress Races Against Shutdown Clock

As a government shutdown loomed, Congress worked to avert it amidst Republican resistance to raising the debt ceiling, despite President-elect Trump's insistence. Previous bipartisan agreements fell apart due to opposition, including from Trump and ally Elon Musk. The issue remains unresolved, spooking financial markets worldwide.

The U.S. Congress found itself racing against time to prevent a partial government shutdown on Friday, following the rejection of President-elect Donald Trump's request by over three dozen Republicans to use a critical measure to raise the nation's debt ceiling. Speaker Mike Johnson was navigating a narrow path to secure passage through the Republican-controlled House and the Democratic-majority Senate ahead of the midnight funding deadline.

"We have a plan," Johnson assured reporters at the Capitol. His statement came amid heightened tensions, as Conservative Republicans had already dismissed Trump's call for a debt ceiling increase, citing potential additions of trillions to the already substantial $36 trillion national debt.

Adding to the drama, Trump intensified his rhetoric calling for a substantial five-year suspension of the debt ceiling, clashing with previous bipartisan efforts that were dismantled following his and Elon Musk's opposition. The subsequent proposal, which emerged in alignment with Trump's stance, failed to pass, leaving financial markets on edge amid fears of a U.S. government default.

(With inputs from agencies.)