Wasington, D.C., Dec 21, (V7N) - A government shutdown will take effect at midnight Friday if Congress does not reach an agreement, putting thousands of federal employees at risk of furlough just before the winter holidays. The House of Representatives rejected a proposal backed by President-elect Donald Trump on Thursday, which would have kept the government open. This bill was a more limited version of a previous bipartisan plan that Trump had previously rejected.

Speaker Mike Johnson is now trying to pass a new budget plan with support from both Republicans and Democrats, though it has faced opposition from hardline GOP members and billionaire Elon Musk. Musk's criticism of the original bill played a role in its collapse, leading to a scramble for an alternative solution that could gain approval in the House, where Republicans have a narrow majority and need Democratic support to pass the bill.

In the Senate, Minority Leader Mitch McConnell made his likely final address as Senate Republican leader, referring to the current budget impasse as a struggle between lawmakers focused on "making a point" versus those focused on "making a difference."

Meanwhile, House Republicans are working on a third plan to keep the government funded. They are discussing breaking the bill into separate votes or passing the same bill without including a debt ceiling increase. The proposed debt ceiling raise of $1.5 trillion could be part of the first reconciliation package, along with $2.5 trillion in spending cuts.

If a shutdown occurs, essential federal workers will continue to operate, including border agents and customs officers, who will be working without pay. Despite the shutdown, U.S. border crossings will remain open, and nearly 19,000 Border Patrol agents will continue their duties along the U.S.-Mexico border. Similarly, 25,000 customs officers will remain active at ports of entry, handling crucial trade and security responsibilities.

The White House remains hopeful that a deal can still be reached, though it has largely deferred to House Republicans to resolve the situation. Federal employees who are deemed non-essential would be furloughed and not paid until an agreement is made, though military veterans' benefits and medical care will not be affected.

As the situation unfolds, both sides remain entrenched, with no clear resolution in sight ahead of the looming shutdown deadline.

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