US Senate Passes Republican-Led Budget Bill, Averting Shutdown Crisis

According to Bloomberg, Senate Majority Leader Chuck Schumer announced that day that "Democrats will withdraw their attempt to block the budget bill, considering the possibility that Democrats would be blamed if operations were suspended."

This has drawn criticism within the Democratic Party that they have voluntarily given up their strongest negotiating leverage to put the brakes on President Donald Trump and Elon Musk's federal government reduction policies. Critics argue they've lost a means to check the Department of Government Efficiency's plans for massive civil servant layoffs and federal agency downsizing.

The chicken game over the shutdown between Democrats and Republicans also affected financial markets. The S&P500 index fell more than 10% over three weeks as anxiety persisted over Trump's tariff policies. However, as the budget bill dramatically passed the Senate, markets rebounded and the S&P500 index surged more than 2%.

Meanwhile, this budget bill does not include any restrictions on Musk's federal budget reduction policies. At the same time, it ensures that government funding will be maintained until the end of the fiscal year on September 30.