Trump Faces Shutdown Risk Amid Divided Congress

President Donald Trump begins his administration facing immediate fiscal instability as a temporary funding bill expires on December 11. The looming deadline creates a risk of a government shutdown during a lame duck standoff between the White House and a Democrat-controlled Congress.

Legislative priorities remain split, with Republicans emphasizing defense spending while Democrats prioritize healthcare. Beyond the immediate funding crisis, the federal government must eventually address the U.S. debt ceiling, which currently stands at $41.1 trillion. While some Republicans may seek an earlier increase, analysts expect the borrowing limit to be reached by fall 2027.

The Committee for a Responsible Federal Budget is urging the new administration and Congress to implement deficit reduction measures. The organization warns that the current budget deficit, which sits at 6-7% of GDP, must be lowered to a target of 3% to maintain investor confidence and prevent rising costs for businesses and households.