US faces govt shutdown as funding plan collapses: What it means?

President-elect Donald Trump abruptly rejected a bipartisan plan on Wednesday to prevent a government shutdown. He instead told House Speaker Mike Johnson and Republicans to essentially renegotiate it, days before a deadline when federal funding runs out. His intervention came after billionaire ally Elon Musk who rejected the plan almost as soon as it was released late on Tuesday night. "This should not pass," Musk posted on his social media site X.

The bipartisan package that Trump rejected extended existing government programmes and services at their current operating levels for a few more months, through March 14, 2025. "Republicans must GET SMART and TOUGH," Trump and Vice President-elect JD Vance said in a statement.

What it means?

The short-term funding bill will need to be passed by Congress by the end of the week to prevent many federal government offices from shuttering beginning on Saturday. Current funding expires on Friday night when Congress hopes to adjourn for the holidays.

When would a government shutdown start?

If Congress doesn't approve a continuing resolution or more permanent spending measure by Friday, the federal government could shut down. Congress last suspended the debt limit to January 2025 as part of a package negotiated by then-House Speaker Kevin McCarthy. 

What is a CR or continuing resolution?

When Congress is down to the wire on passing measures to fund the federal government, the term “CR” often comes up. What does it mean? “CR” stands for “continuing resolution,” and it's a temporary spending bill that lets the federal government stay open and operating before Congress and the president have approved a more permanent appropriation.

(With inputs from PTI/AP)