CBS News
How Trump and Elon Musk derailed bipartisan plans for a funding bill, bringing on risk of shutdown
President-elect Donald Trump delivered a likely death blow to bipartisan congressional budget negotiations, rejecting the measure as full of giveaways to Democrats after billionaire ally Elon Musk whipped up outrage toward the bill and cheered on Republican lawmakers who announced their opposition.
Trump’s joint statement Wednesday with Vice President-elect JD Vance stopped the bill in its tracks and punctuated a torrent of social media posts by Musk attacking the legislation for what he described as excessive spending.
“Stop the steal of your tax dollars!” Musk wrote on his social media platform X as he dangled primary challenges against anyone who voted for the budget deal, a threat Trump later echoed in a post of his own.
The episode showcased the growing political influence of Musk, a huge campaign donor and promoter of Trump-friendly messaging on X, the social media platform formerly known as Twitter that he bought in 2022. Trump has selected Musk alongside entrepreneur Vivek Ramaswamy to spearhead the Department of Government Efficiency, a nongovernmental task force formed to find ways to fire federal workers, cut programs and reduce regulations.
Rep. Andy Barr, a Republican from Kentucky, said his office was flooded with calls from constituents.
“My phone was ringing off the hook,” he said. “The people who elected us are listening to Elon Musk.”
Brandon Bell/Getty Images
In his statement with Vance, Trump said Republicans should restart negotiations over the legislation, arguing that “anything else is a betrayal of our country.” He also called for including an extension of the debt ceiling while President Joe Biden is in office.
“Increasing the debt ceiling is not great but we’d rather do it on Biden’s watch,” they said. “If Democrats won’t cooperate on a debt ceiling increase now, what makes anyone think they would do it in June during our administration? Let’s have this debate over the debt ceiling now.”
Trump’s opposition to what was considered must-pass legislation reinjected a sense of uncertainty and political brinkmanship that was reminiscent of his first term in office. It was a dramatic turn of events for House Speaker Mike Johnson, who negotiated the bill and has been undermined by Trump as he faces reelection for his post in just a couple of weeks. Republicans have a slim majority, raising the possibility of a replay of leadership disputes that paralyzed the House a year ago.
Many lawmakers were in the middle of holiday and year-end celebrations with staff when Trump came out against the legislation.
“I’ve been here 14 years, OK? So nothing up here surprises me anymore,” said Rep. Steve Womack, a senior Republican appropriator from Arkansas. “We shouldn’t be in this mess.”
The Biden administration criticized the possibility of a shutdown.
“Republicans need to stop playing politics with this bipartisan agreement or they will hurt hardworking Americans and create instability across the country,” said White House press secretary Karine Jean-Pierre.
Grover Norquist, president of Americans for Tax Reform and a veteran of Washington’s budget battles, was concerned about the lack of a clear plan for resolving the dispute.
“There’s got to be a second part of the strategy,” he said.
Norquist has been enthusiastic about Musk’s ability to generate public attention for efforts to reduce the size of government. But he suggested that the owner of a space rocket company wasn’t the right person to spearhead a congressional spending debate.
“He doesn’t know politics like he knows physics,” he said.
But others were thrilled with Musk’s involvement.
“In five years in Congress, I’ve been awaiting a fundamental change in the dynamic,” posted Rep. Dan Bishop, a Republican from North Carolina. “It has arrived.”
Musk began criticizing the measure as soon as it was released Tuesday evening, and he continuously posted about it Wednesday.
“Any member of the House or Senate who votes for this outrageous spending bill deserves to be voted out in 2 years!” he wrote. He also called it “one of the worst bills ever written.”
Sometimes Musk amplified false claims, such as the idea that the legislation included $3 billion for a new football stadium in Washington. In reality, the legislation would transfer ownership of the land from the federal government to the city, paving the way for eventual development.
That followed a pattern seen in CBS News analysis of his posts during the campaign season, when Musk frequently shared false narratives about the election and amplified extreme voices from the right-wing fringe to his millions of followers.
Musk appeared emboldened by the experience combatting the funding bill.
“The voice of the people was heard,” Musk wrote. “This was a good day for America.”
Democratic House leader Hakeem Jeffries said the fallout would be Republicans’ fault.
“You break the bipartisan agreement, you own the consequences that follow,” he wrote on X.
Frito-Lay is recalling a limited number of 13 oz. bags of Lay’s Classic Potato Chips after being alerted by a consumer contact that the product may contain undeclared milk.
The bags of chips affected by recall were distributed to certain retail stores and e-commerce distributors in Oregon and Washington and were available for sale beginning Nov. 3, 2024.
“Those with an allergy or severe sensitivity to milk run the risk of a serious or life-threatening allergic reaction if they consume the recalled product,” the Food and Drug Administration said in the recall notice posted Thursday.
No allergic reactions related to the recall have been reported, according to the recall. Additionally, no other Lay’s products, flavors, sizes or variety packs are affected.
FDA
The recalled chips include Lay’s Classic Potato Chips, in flexible 13 oz. (368.5 grams) bags with UPC code 28400 31041, a “Guaranteed Fresh” date of 11 Feb 2025, and one of either two manufacturing codes: 6462307xx or 6463307xx.
General guidelines from the FDA advise consumers who have purchased any recalled food to dispose of the product or return it to the retailer for a full refund.
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CBS News
What is the debt ceiling? Here’s why Trump wants Congress to abolish it before he takes office
Washington — President-elect Donald Trump, Vice President-elect JD Vance and billionaire Elon Musk blew up a GOP-backed deal to fund federal agencies into March, raising the pressure on Republican congressional leaders to craft a plan to avert a government shutdown just before the holidays.
In a statement Wednesday, Trump and Vance lambasted the agreement for including provisions favored by Democrats. But the incoming president and vice president also added a new, significant wrinkle to negotiations when they urged Congress to raise or abolish the debt ceiling now, instead of next year.
“Increasing the debt ceiling is not great but we’d rather do it on Biden’s watch,” Trump and Vance said in their statement. “If Democrats won’t cooperate on the debt ceiling now, what makes anyone think they would do it in June during our administration? Let’s have this debate now.”
What is the debt ceiling?
Set by Congress, the debt ceiling, or limit, is the maximum amount of money the U.S. Treasury is authorized to borrow to pay debts incurred by the federal government. Lifting the debt ceiling does not authorize new spending, but instead lets the government spend money on obligations that Congress has already been approved.
Failing to address the debt ceiling could lead the U.S. to default on its debt, which would have devastating effects on the economy. The government has never defaulted, and the Treasury typically uses accounting moves, known as “extraordinary measures,” to delay breaching the debt ceiling.
While raising the debt ceiling used to be routine, legislation addressing it has in recent years been used as leverage to force policy concessions and fuel debates over government spending.
Congress last addressed the debt ceiling in June 2023 as part of a legislative package negotiated by President Biden and then-House Speaker Kevin McCarthy. That deal suspended the debt ceiling through Jan., 1, 2025, ensuring any fight over it would take place after the 2024 elections.
The Treasury Department will likely implement extraordinary measures to stave off a default in the new year. It will also announce an “X date,” the estimated point at which the government will no longer be able to pay its obligations. The Economic Policy Innovation Center, a conservative think tank, projected in an analysis released Monday that it’s possible the debt limit will be reached by June 16.
While the Treasury Department’s use of extraordinary measures would give Congress more time to address the debt ceiling, Trump is now urging lawmakers to take action now, before he takes office.
Why does Trump want to raise the debt ceiling?
The president-elect will come into office with a legislative to-do list that includes securing the border and extending provisions of his signature Tax Cuts and Jobs Act, which was enacted in 2017 and overhauled the tax code. But a fight over the debt ceiling could complicate efforts by the Republican-led House and Senate to focus on those legislative initiatives and pass them quickly.
Trump is urging lawmakers to eliminate the debt ceiling altogether, a position that some prominent Democrats have endorsed in the past.
“Number one, the debt ceiling should be thrown out entirely,” Trump said in a phone interview Thursday with CBS News’ Robert Costa. “Number two, a lot of the different things they thought they’d receive [in a recently proposed spending deal] are now going to be thrown out, 100 percent. And we’ll see what happens. We’ll see whether or not we have a closure during the Biden administration. But if it’s going to take place, it’s going to take place during Biden, not during Trump.”
Trump separately told ABC News that “there won’t be anything approved unless the debt ceiling is done with,” indicating any spending deal to prevent a shutdown must address the debt limit.
“If we don’t get it, then we’re going to have a shutdown, but it’ll be a Biden shutdown, because shutdowns only [injure] the person who’s president,” he told ABC News.
Whether Republicans and Democrats would go along with such a plan, though, is far from clear. GOP lawmakers in both chambers have opposed raising the debt ceiling without spending reforms, and debates over the debt limit often give way to broader fights over the federal budget, which conservatives in Congress have said is bloated and should be reduced. Plus, Democrats still control the Senate and the White House.
White House press secretary Karine Jean-Pierre said in a statement Wednesday that shutting down the government would harm families and endanger services Americans rely on.
“Republicans need to stop playing politics with this bipartisan agreement or they will hurt hardworking Americans and create instability across the country,” she said. “President-elect Trump and Vice President-elect Vance ordered Republicans to shut down the government and they are threatening to do just that — while undermining communities recovering from disasters, farmers and ranchers, and community health centers.”
House Democratic Leader Hakeem Jeffries suggested Democrats would not go along with a plan pushed by Republicans to raise the debt limit.
“GOP extremists want House Democrats to raise the debt ceiling so that House Republicans can lower the amount of your Social Security check. Hard pass,” the New York Democrat wrote on the social media platform Bluesky.
Jeffries also told reporters “the debt limit issue and discussion is premature at best.”