Biden signs plan to fund US government

Washington, Dec 21 US President Joe Biden on Saturday signed legislation funding the federal government until mid-March saying this is "good news for the American people, especially as families gather to celebrate this holiday season".

The bill was first passed by the House of Representatives on Friday evening, ending days of uncertainty triggered by President-elect Donald Trump's directive to Republican lawmakers to abandon an earlier bipartisan plan and his demand for suspension of the debt ceiling.

The House had voted down the bill sought by him, with many Republicans voting with Democrats.

The House passed legislation without Trump's demanded clause and the Senate approved it just past midnight, sending it to the White House.

"This agreement represents a compromise, which means neither side got everything it wanted. But it rejects the accelerated pathway to a tax cut for billionaires that Republicans sought, and it ensures the government can continue to operate at full capacity,” Biden said, adding: "That's good news for the American people, especially as families gather to celebrate this holiday season."

Significant parts of the US federal government had faced shutdown if a funding plan was not legislated by Friday-Saturday midnight. After the fiscal year ended on September 30, a temporary plan was legislated to keep the government funded till Friday-Saturday midnight.

A shutdown would have impacted most of the federal government, but not all.

Exceptions are made for "essential" services such as law enforcement and air traffic controllers and those that are fee-funded, such as visa services of the state department and certain operations of the citizenship and immigration department.

Essential service workers will not be paid, however, till a spending bill is approved by the Congress. All other employees will be forced to stay home without pay.

It has been averted for now with a spending plan that keeps the federal government funded till mid-March, sets aside $100 billion for disaster relief and $10 billion for farms.