Elon Musk became a significant figure during the US shutdown situation, working with President Trump to draft a bipartisan financing plan.
During the US shutdown situation, Elon Musk became a powerful figure who shared a lot of power with former President Donald Trump. The wealthiest individual in the world was instrumental in the passage of legislation by the Republican-controlled US House of Representatives on Friday that would prevent a government shutdown at midnight.To guarantee that the government will have money after midnight, when the present budget ends, the plan would then need to be approved by the Senate, which is controlled by Democrats. If they do, President Joe Biden plans to sign it into law, according to the White House.
Law enforcement, national parks, and millions of federal employees' salaries would all be disrupted by a government shutdown. A travel industry trade group issued a warning, stating that a shutdown may result in significant disruptions over the busy Christmas season and cost airlines, hotels, and other businesses $1 billion every week. Authorities cautioned that passengers may encounter lengthy lineups at airports.
The package, which was approved by a bipartisan vote of 366-34, was similar to a bipartisan plan that was shelved earlier this week due to an online tirade from Musk and Trump accusing it of having too many irrelevant provisions, including a crackdown on pharmacy benefit managers and a pay increase for lawmakers.
The Trump-Musk Axis
It was hardly surprise that Trump intervened in the financing bill. A crucial issue that would have forced the country's borrowing capacity into the new year was the incoming president's redoubled demand that the debt ceiling be raised. Trump's social media rhetoric was direct: "If there is going to be a shutdown of government, let it begin now," he said, stressing that raising the debt ceiling was an unavoidable requirement.
However, it was evident that Trump's demands were creating significant rifts within the GOP as House Speaker Mike Johnson and congressional Republicans rushed to pass a temporary solution before the government shut down. Any legislation that would raise the debt ceiling was met with resistance from many Republicans, especially those who were fiscal conservatives. Johnson was now faced with the challenging task of appeasing Trump without causing a disastrous shutdown.
Here comes Elon Musk, whose impact extended well beyond the realm of business. Musk has no official post in Washington, but Trump assigned him to lead a task team tasked with lowering the budget.
The previous plan Johnson offered, a 1,500-page bipartisan compromise he reached with Democrats that included disaster funding for hard-hit states but did not address the debt-ceiling crisis, was met with fierce resistance from Trump and Musk, as well as a social media army.
Elon Musk influences policy through social media
The CEO of SpaceX exerted pressure on politicians and changed public opinion through his enormous social media following. Prior to the vote, Musk wrote on his platform X (previously Twitter) on Thursday, attacking the proposed budget measure for what he considered superfluous clauses, including new limitations on Chinese investment and a salary increase for parliamentarians.
Musk's criticism was probably intended to protect his commercial interests, especially in China, where Tesla operates extensively. Representative Rosa DeLauro (D-CT), who criticized Musk during the discussion, said that Democrats had initially advocated for a clause restricting investments in China, a policy that Musk obviously did not want to see passed. For his part, Musk appeared content with the bill's final draft, which eliminated several of these clauses. Musk stated on X that "it went from a bill that weighed pounds to a bill that weighed ounces," indicating his approval.
Trump's support for a revised spending proposal that took Musk's worries into account further demonstrated the billionaire's influence. Musk undoubtedly influenced the discussion, even though the updated plan eventually failed.
Musk's position was obviously more than consultative. He reportedly collaborated closely with Trump to shape Speaker Johnson's shutdown strategy. Musk's backing was crucial in igniting conservative resistance to the initial bill, which earlier in the week had garnered strong bipartisan support. Johnson had to reassess after coming under fire from Trump and Musk as well as the right edge of his party.
With several contentious items removed, the final 118-page package that passed the House was a compromise. It would provide $10 billion for agricultural support, $100 billion for disaster relief, and government funding until March. Speaker Johnson was forced to make this compromise in order to gain enough support within his party, but the law did not include Trump's insistence on lifting the debt ceiling.
This last-minute move also demonstrated Musk's increasing influence in Washington. Musk is well-positioned to advance an agenda centered on cutting government expenditure and boosting efficiency as the incoming director of the Department of Government Efficiency in Trump's new administration.
Avoided shutdown of the US government?
By a slim margin, the government shutdown situation was avoided. More Democrats voted in support of the final bill than Republicans, and it passed the House 366–34. President Biden has stated that he will sign it into law once it passes the Senate, where it is anticipated to go swiftly.
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