FILE PHOTO: The U.S. Capitol building is pictured at sunset on Capitol Hill in Washington, U.S., November 22, 2019. REUTERS/Loren Elliott/File Photo
WASHINGTON (Reuters) - The U.S. Congress has two days to avert a partial government shutdown after Republican President-elect Donald Trump rejected a bipartisan deal late on Wednesday and demanded lawmakers also raise the nation's debt ceiling before he takes office next month.
Trump pressured his fellow Republicans in Congress to reject a stopgap bill to keep the government funded past the deadline of midnight on Friday.
Absent congressional action, the U.S. government will begin a partial shutdown on Saturday that would disrupt everything from air travel to law enforcement in the days leading up to the Dec. 25 Christmas holiday.
The bipartisan deal reached on Tuesday would have extended funding through March 14.
Trump warned that Republicans who vote for the current legislative package could have trouble getting re-elected because they will face primary challenges inside their own party.
"Any Republican that would be so stupid as to do this should, and will, be Primaried," Trump wrote on his Truth Social platform.
If it were to materialize, it would be the first government shutdown since one that extended through December 2018 into 2019, during Trump's first four-year White House term.
Trump is now calling on Congress to pass legislation that would tie up loose ends before he takes office next month by raising the government's borrowing authority - a politically difficult task - and extending government funding.
He also said lawmakers should strip out elements of the deal backed by Democrats, whose support would be necessary for passage.
Trump's comments came after his ally Elon Musk, who has been tasked by Trump to prune the federal budget, pressured Congress to reject the bill and said those who back it should be voted out of office.
TALKS CONTINUED LATE INTO THE NIGHT
After a meeting with Vice President-elect JD Vance and other top Republican leaders late on Wednesday, Republican House of Representatives Speaker Mike Johnson said there was a "productive conversation," without giving details.
"I'm not going to say anything else about it tonight because we are in the middle of these negotiations," Johnson said.
When asked if raising the debt ceiling will be part of an agreement being worked on, House Republican leader Steve Scalise said lawmakers were "not there yet."
House Appropriations Committee Chair Tom Cole, who was also at the meeting, was asked if he was confident there would not be a government shutdown. He replied: "I'm not confident of anything."
NEXT STEPS REMAIN UNCLEAR
The next steps for Congress were unclear. Bipartisan agreement will be needed to pass any spending bill through the House, where Republicans currently have a 219-211 majority, and the Senate, where Democrats currently hold a narrow majority.
The White House of Democratic President Joe Biden, who remains in power until Trump takes office on Jan. 20, said on Wednesday that "Republicans need to stop playing politics" and that a government shutdown will be damaging.
The current bill would fund government agencies at current levels and provide $100 billion for disaster relief and $10 billion in farm aid. It also includes a wide range of unrelated provisions, such as a pay raise for lawmakers and a crackdown on hidden hotel fees.
Trump said Congress should limit the bill to temporary spending and disaster relief and also raise the national debt ceiling now before it comes to a head next year.
The stopgap measure is needed because Congress has failed to pass regular spending legislation for the fiscal year that began on Oct. 1. It does not cover benefit programs like Social Security, which continue automatically.
The U.S. government has spent more money than it has taken in for over 20 years, as Democrats have expanded health programs and Republicans have cut taxes.
Steadily mounting debt - currently $36 trillion - will force lawmakers to raise the debt ceiling at some point, either now or when borrowing authority runs out next year. Failure to act could have potentially severe economic consequences.
(Reporting by Richard Cowan, Katharine Jackson, Andy Sullivan and Bo Erickson; additional reporting by Kanishka Singh; editing by Kieran Murray)
