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Explainer | What happens if the US government runs out of money after Christmas?

  • Donald Trump’s threat not to sign a $2.3 trillion spending package means parts of the US government may have to shut down
  • Here’s what happens if the White House and Congress cannot approve a spending plan by Monday

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Marine One, with US President Donald Trump on board, departs the South Lawn of the White House in Washington. Photo: Bloomberg
Reuters

An enraged Donald Trump helicoptered off the White House lawn for one of the last times in his presidency Wednesday, leaving Americans chaos as a Christmas present.

The Republican was bound with his wife Melania for a holiday at his lavish Mar-a-Lago resort in Florida.

Americans were facing the prospect of a government shutdown during a pandemic as Trump, angry at his fellow Republicans in Congress, threatened not to sign a US$2.3 trillion government funding and coronavirus aid package.
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The package, including US$892 billion for relief from the coronavirus crisis, ended months of negotiations between congressional Republicans and Democrats.

It also pays for government operations through September 2021, so if Trump blocks it then large parts of the US government will start to shut down next Monday, December 28, for lack of funds.

If a shutdown happens, it could last until after Joe Biden is sworn in as president on January 20, since the current Congress goes out of business on January 3 – leaving little time to work out a compromise – and the new Congress is not scheduled to conduct legislative business until after the inauguration.

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