The US Senate has approved a Republican-supported spending bill, averting a government shutdown but causing divisions within the Democratic Party.
Senate Approval of the Bill
The US Senate passed the funding package with a 62-38 vote, ensuring government continuation and averting a shutdown. This followed significant lobbying by Republicans, including President Donald Trump and House Speaker Mike Johnson.
Democratic Response and Actions
The bill stirred divisions among Democrats, who feel they lost leverage to curb executive power expansion. Majority Leader Chuck Schumer withdrew opposition to prioritize government operations, with Democrats planning to shift to legal challenges.
Impact on Financial Markets
The bill's approval coincided with financial market turbulence due to Trump's tariff policies. The announcement of Senate progress led to a 2% recovery in the S&P 500 index, providing short-term relief for investors.
The passage of the spending bill marks a significant Republican victory and prevents a government shutdown despite Democratic disagreements.
