The US has narrowly avoided a government shutdown – with just three hours to spare before current funding expired.
A rushed package means agencies will be able to continue operating as normal for the next 45 days, ending turmoil in Washington.
However, this temporary solution has dropped aid to Ukraine – an issue that will need to be revisited with a growing number of Republican lawmakers.
Image: The final result. Pic: Senate Television via AP
Had a deal not been reached, four million government employees would have been left unpaid – with national parks and financial regulators forced to shut their doors.
Active-duty soldiers would have had to work without pay, with nutrition aid to seven million poor mothers suspended.
There could also have been knock-on effects with airport security and border control, delaying passengers.
Democratic Senate majority leader Chuck Schumer said: “The American people can breathe a sigh of relief – there will be no government shutdown … today, MAGA extremism has failed and bipartisanship has prevailed.”
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A shutdown had looked all but inevitable earlier in the week, with right-wing Republicans calling for government agencies to slash their budgets by up to 30% – a move that the White House and the Democrats rejected as too extreme.
Image: Democrat Chuck Schumer gave a thumbs up as the threat of a shutdown was averted. Pic: AP
That plan collapsed on Friday, with Republican House Speaker Kevin McCarthy abandoning those demands.
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He instead relied on Democrats to pass the bill – putting his own job at risk – paving the way for the Senate to pass the measure 88-9.
Image: Republican House Speaker Kevin McCarthy. Pic: AP
Mr McCarthy later struck a defiant tone and dismissed concerns he could be ousted as leader, telling reporters: “I want to be the adult in the room, go ahead and try.
“And you know what? If I have to risk my job for standing up for the American public, I will do that.”
Analysis: A sticking plaster, but lots unresolved
It was brinkmanship, about as close to the brink as it gets.
US networks had been running “countdown clocks” to government shutdown and they showed less than nine hours when the breakthrough vote happened in the House.
It was the magic key to avoiding a shutdown and everything that would have entailed – the closures, the workers unpaid, the multibillion-dollar hit to the economy and the rest.
It came down to last-minute political gymnastics. Kevin McCarthy, Republican Speaker of the House of Representatives, had spent weeks trying, and failing, to corral right-wing members of his party behind a preferred funding plan.
Their objections stood in his way and they didn’t budge. It was a measure of the influence wielded by the likes of Matt Gaetz and Marjorie Taylor-Greene, once on the faraway fringe, but now key players in the party.
At the last-minute, McCarthy’s 45-day stopgap proposal to avoid a shutdown was carried forward only when Democrats weighed in behind it.
It may yet come back to bite Mr McCarthy, one of America’s most prominent political figures.
His right-wing party critics had threatened to oust him if he counted on Democrat votes.
It’s one loose end among many – not least the issue of funding for Ukraine.
The bill that has averted the shutdown doesn’t include $6bn (£4.9bn) in Ukrainian aid – a concession demanded by many Republicans in the House of Representatives.
How that squares with a US government commitment to aiding the war effort will be central to the discussions in the 45 days that this bill buys.
Democrats who nodded it through saw the danger in being seen to deprioritise US domestic interests amidst the immediate threat of a shutdown.
Having pulled back from the brink, they will wrestle with the danger they see in deprioritising Ukraine and its war effort.
President Joe Biden has welcomed the deal, and says it prevents “an unnecessary crisis that would have inflicted needless pain on millions of hard-working Americans”.
He added: “I want to be clear – we should never have been in this position in the first place. Just a few months ago, Speaker McCarthy and I reached a budget agreement to avoid precisely this type of manufactured crisis.
“For weeks, extreme House Republicans tried to walk away from that deal by demanding drastic cuts that would have been devastating for millions of Americans. They failed.”
Mr Biden went on to warn that US support for Ukraine cannot be interrupted when the country is at a “critical moment”.
US President Donald Trump says he has yet to decide whether the US will join Israel militarily in its campaign against Iran.
Asked whether the US was getting closer to striking Iran’s nuclear facilities, Mr Trump said: “I may do it. I may not do it.”
Speaking outside the White House on Wednesday, he added: “Nobody knows what I’m going to do…Iran’s got a lot of trouble, and they want to negotiate.
“And I said, ‘why didn’t you negotiate with me before all this death and destruction?'”
Mr Trump said Iran had reached out to Washington, a claim Tehran denied, with Iran’s mission to the UN responding: “No Iranian official has ever asked to grovel at the gates of the White House.”
Iran’s supreme leader, Ayatollah Ali Khamenei said Iran would not surrender and warned “any US military intervention will undoubtedly cause irreparable damage” to US-Iranian relations.
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The families caught up in Iran-Israel attacks
Strikes continue
Hundreds have reportedly died since Iran and Israel began exchanging strikes last Friday, when Israel launched an air assault after saying it had concluded Iran was on the verge of developing a nuclear weapon, a claim Tehran denies.
Israel launched three waves of aerial attacks on Iran in the last 24 hours, military spokesman Brigadier General Effie Defrin has said.
Israel deployed dozens of warplanes to strike over 60 targets in Tehran and western Iran, including missile launchers and missile-production sites, he said.
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1:58
Can Iran’s leadership be toppled?
“The aim of the operation is to eliminate the existential threat to the State of Israel, significantly damage Iran’s nuclear programme in all its components, and severely impact its missile array,” he said.
Early on Thursday Israel issued an evacuation warning to residents of the Iranian Arak and Khandab regions where Iran has heavy water reactor facilities. Heavy water is important in controlling chain reactions in the production of weapons grade plutonium.
Meanwhile Iran says it has arrested 18 people it describes as “enemy agents” who it says were building drones for the Israelis in the northern city of Mashhad.
Iran also launched small barrages of missiles at Israel on Wednesday with no reports of casualties. Israel has now eased some restrictions for its civilians.
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The US is working to evacuate its citizens from Israel by arranging flights and cruise ship departures, the US ambassador to the country has said.
In the UK, Sir Keir Starmer chaired a COBRA emergency meeting on the situation in the Middle East, with a Downing Street spokesperson saying: “Ministers were updated on efforts to support British nationals in region and protect regional security, as well as ongoing diplomatic efforts”.
A senior US senator who supports Donald Trump has told Sky News why he believes the US would be right to intervene in Iran.
Senator Ted Cruz, a Republican from Texas who ran against Mr Trump in 2016 but now backs him, told US correspondent David Blevins that Iran is an “acute threat to the national security of the US”.
He went on to claim that because “Iran is also building ICBMs (intercontinental ballistc missiles)” and “You don’t need an ICBM to go to Israel”, it indicated Iran’s intention “to take a nuclear weapon to the United States to murder Americans”.
“Nobody is talking about invading Iran,” Mr Cruz added. “We’re not going to see boots on the ground.”
It comes after the US president said he “may do it, I may not do it” when asked if he would launch a strike against Iranian nuclear facilities.
So far, Israel has been attacking Iran alone since it ramped up its military action last Friday, launching strikes against what it says are Tehran’s facilities for developing a nuclear weapon and also destroying its air defences.
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Iran has always denied seeking the ability to make a nuclear weapon from its uranium enrichment programme.
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Blevins’s fellow US correspondent Mark Stone says that while figures like Mr Cruz back military action, “a whole host of other figures are saying ‘do not do it'”.
“The social media space is absolutely full of MAGA [Make America Great Again] figures from the right… saying ‘we absolutely must not go into Iran’.”
If the US were to decide to take military action against Iran, it could have implications for the UK, as America may ask to station refuelling aircraft at a British base in Cyprus and B-2 bombers, which could carry the bunker buster bombs required to attack Iran’s Fordow nuclear enrichment facility, could launch from the British base of Diego Garcia.
Mr Cruz told Sky News that while many of Mr Trump’s support base did not want to see the US involve itself in another war, “the overwhelming majority of Americans, nearly 80%, support President Trump, and support President Trump defending us against an Iranian nuclear weapon.”
America is deploying more fighter planes to the Middle East in a “demonstration of force” as tensions escalate and speculation about a possible US strike on Iran continues.
Pictures and flight tracking data show F-35 jets and tanker aircraft being moved towards the region, as well as the tasking of an aircraft carrier, providing options in case President Donald Trump decides to intervene in the conflict.
But one particular aircraft that has not been seen just yet – the B-2 stealth bomber – could reveal the most about America’s intentions towards Iran…
Why is America moving more aircraft to the Middle East?
“It’s giving them options,” says military analyst Michael Clarke. “They have got four types of aircraft – including fighters, interceptors and fighter-bombers – all in the right region.”
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Clarke: What could US involvement look like as Iran attacks ease
The new arrivals can be spread around several existing military bases that the US has in the region in Bahrain, Qatar, UAE, Kuwait and Saudi Arabia.
“More is better and also it’s a demonstration of force,” Prof Clarke added. “There’s a political element behind it, to show the Iranians what they can do, but also to other allies.
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“The Americans want to be taken seriously in all of this.”
Image: A Boeing KC-46A Pegasus, primarily used for aerial refueling, is seen on tracking in the eastern Mediterranean. Pic: Flightradar24
Analysis: What aircraft have moved to the region?
Sky News analysis of flight-tracking data shows more than 30 US military planes have been active over parts of Europe and the Mediterranean Sea over the past three days.
These include planes used for reconnaissance, refuelling in mid-air as well as carrying cargo.
Image: Map of US military bases in the Middle East
An air-traffic control recording from the US suggests F-22 Raptors are being sent across the Atlantic. Two refuelling tankers are visible on flight tracking data leaving the US east coast, likely escorting the stealth fighter jets.
In images taken by photographer Glenn Lockett in Suffolk, three US air tankers were seen flying over England, each accompanied by four F-35 jets.
F-35s are one of the most advanced warplanes in the world, known for their ability to evade enemy radar.
Image: A US air tanker seen flying over England, accompanied by F-35 jets. Credit: Instagram/g.lockaviation
Flight tracking data shows that the tankers travelled to the Mediterranean and then returned to the UK.
Most of the US military planes tracked by Sky News regularly turn off their locations and final destinations, according to the data from Flightradar24.
Some of the planes moved from the US to Europe, while others appeared to move closer to the Middle East. At least five of the US military aircraft landed at Chania Airport on the Greek island of Crete.
An air-traffic control recording from the US also suggests F-22 Raptors are being sent across the Atlantic. Two refuelling tankers are visible on flight tracking data leaving the US east coast, likely escorting the stealth fighter jets.
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US defence secretary Pete Hegseth stressed that the deployment of more aircraft was defensive in nature, as Washington looks to safeguard its forces in the region.
Fighter aircraft have been used to shoot down drones and projectiles in the past.
America already has a substantial force in the Middle East, with nearly 40,000 troops as well as air defence systems, aircraft and warships.
But as the conflict between Israel and Iran carries on – and President Trump continues to make threats against Tehran – it’s possible that multiple options could be on the table for intervention.
B-2 bombers – the ones to watch?
Asked what he’s looking out for as speculation about whether the US will intervene directly continues, Prof Clarke pointed to one particular aircraft that hasn’t been seen moving towards the region yet: The B-2 stealth bomber.
Known for its iconic triangle shape and ability to penetrate deep air defences undetected, the B-2 has lesser-known capability that could be crucial for any action over Iran: it can carry ‘bunker buster’ bombs.
So far Israel has not been able to damage Iran’s secretive Fordow uranium enrichment plant, which is buried deep beneath a mountain.
Image: A B-2 stealth bomber flies over Washington DC during a 4 July celebration. File pic: AP
Any movement of B-2 bombers to the joint UK-US base on Diego Garcia in the Indian Ocean could “indicate the likelihood that the Americans are going to use bunker busters in Iran,” Prof Clarke says.