US politicians have rejected a spending bill endorsed by president-elect Donald Trump – leaving Congress with no clear plan to avert a fast-approaching government shutdown.

On Wednesday, Mr Trump dismissed a bipartisan compromise, which Republicans and Democrats had reached to prevent a shutdown just days before the Christmas winter break.

Instead, he urged Republicans in the House of Representatives to back a new deal which included a three-month extension of government funding and a two-year suspension of the debt limit into January 2027. The debt ceiling caps the amount the federal government can borrow.

Hakeem Jeffries, the House minority leader and top Democrat in the chamber, called the revamped Republican proposal “laughable” – and the bill was rejected on Thursday night by a 175-235 vote, with all but two Democrats and 38 Republicans voting against it.

Several Republicans had said they were not interested in getting rid of the debt ceiling if they did not also cut spending.

“It’s like… increasing your credit card limit, while you don’t do anything to actually constrain spending,” said Republican Representative Chip Roy.

The outcome is a massive setback for Mr Trump and his billionaire ally Elon Musk, who has been tasked by the incoming president with pruning the federal budget.

Musk, a tech entrepreneur and the world’s richest person, led the charge earlier in the week against the bipartisan funding deal in dozens of posts on his social media platform X, describing it as “criminal”. His opposition led support for the package to quickly crumble.

Congress now has until midnight on Friday to approve a spending bill that would avert a government shutdown.

“We’re going to regroup and we will come up with another solution, so stay tuned,” House Speaker Mike Johnson said after the vote.

But Mr Trump remained defiant, insisting Congress scrap the debt ceiling, or extend it to 2029.

“Congress must get rid of, or extend out to, perhaps, 2029, the ridiculous debt ceiling. Without this, we should never make a deal,” he said in a post on Truth Social on Friday morning.

He has repeatedly urged Republicans in the House to tie up loose ends before he takes office on 20 January.

It leaves the government in limbo with just hours to thrash out a new bill to put to a vote.

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What a government shutdown means

If the House fails to approve a spending bill or extend the deadline a government shutdown will begin impacting federal employees and the public services they provide.

Essential government agencies like the FBI, Border Patrol and the Coast Guard would remain open.

But the Transportation Security Administration has warned travellers could face long lines at airports.

National parks and monuments would close, and while troops would stay at their posts, many civilian employees in agencies like the Department of Defence would be sent home.

Sometimes federal workers are furloughed, meaning they keep their jobs but temporarily don’t work until the government reopens.

Other federal staff may stay on the job but without pay, with the expectation they would be paid back in full once the government reopens.

Courts would also be affected, with civil proceedings paused, while criminal prosecutions continue.

Automated tax collection would stay on track, but the Internal Revenue Service would stop auditing tax returns.

The last government shutdown – the longest in history – took place in December 2018 and January 2019 during Mr Trump’s first term in The White House.

Consider one view outside the George Washington University Hospital in Washington DC.

“I think we need to paint a mural to Luigi, what do you think?” said one passer-by, with a smile.

“I don’t endorse murder but I think it’s a good thing if CEOs are a little bit nervous.”

Everyone has a thought for the alleged assassin, Luigi Mangione, and it’s not all negative.

Villain or hero? It’s a question dividing America, and not necessarily down the middle.

A quick trawl through the internet reveals Luigi merchandise, Luigi tattoos, “Free Luigi” posters and a fundraiser for Luigi’s legal defence – which has raised $157,225 (£125,492).

Part of the murder response is all about Luigi – the part that bypasses due sympathy for the family and friends of Brian Thompson, the 50-year-old father-of-two gunned down in the street.

He was charged with first-degree murder – later modified to murder as an act of terrorism – after a manhunt that lasted five days.

If the motive was anger with the US health insurance industry, then it’s a sentiment shared.

Americans have long been ground down by the cost of private insurance to gain access to healthcare and the struggle that many face to secure payments.

Claims denied by insurance companies are typically made by people in their darkest hour of urgent medical need. Stories of emotional and financial trauma are legion.

Not that any of that justifies the murder of a healthcare executive on a New York street. Or does it?

I put that question to Sam Beard, organiser of the December 4th legal committee which is raising funds for Luigi Mangione’s legal defence.

He said this: “As a moral matter, it’s a difficult thing to tease out because the same logic has to apply both ways.

“A CEO had his life, tragically and surprisingly to all of his loved ones, cut short, but he was considered an effective CEO exactly because he profited from denying peoples’ claims which cut their lives short.”

“From a simple moral rule, we can’t just apply it without acknowledging that we’re in an immoral system that degrades the value of some human lives while uplifting the value of others. So when we treat this only as a moral act we are plugging our ears to its larger political meaning.

“I’m not in favour of anybody having their life tragically cut short but what I do see as undeniable is that this privatised healthcare system that does cut the lives short of hundreds of thousands of Americans every few years, may be finally getting its reckoning.”

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What we know about Luigi Mangione

The adulation attracted by Mangione troubles the authorities in New York, who fear copycat attacks.

Business executives and employees in health insurance have reported being threatened and harassed. “Wanted” posters have also been put up around New York, featuring the CEOs of at least two health insurance companies.

When the indictment against Mangione was unveiled earlier this week, New York City’s Police Commissioner Jessica Tisch emphatically denounced the adulation he has enjoyed.

“This was a senseless act of violence,” she said. “We don’t celebrate murders and we don’t lionise the killing of anyone.”

There’s no doubting the anger felt at the reaction in his favour – but there’s no denying it either.

Luigi Mangione, the man accused of shooting dead UnitedHealthcare boss Brian Thompson, has arrived in New York where he faces new charges.

The 26-year-old was flown to Manhattan by plane and helicopter after he agreed to be extradited from Pennsylvania, where he was arrested last week after five days on the run.

He now faces fresh federal charges in relation to the shooting of father-of-two Brian Thompson outside a Hilton hotel in Manhattan on 4 December.

The additional charges include murder using a firearm, two charges of stalking and an additional firearms offence.

The charge of murder by firearm could bring the possibility of the death penalty if he is convicted – but prosecutors have not said whether they will pursue such a punishment.

Mangione waived his right to an extradition hearing at Blair County Court in Pennsylvania and was immediately turned over to at least a dozen New York Police Department (NYPD) officers.

The NYPD quickly led him to a waiting SUV and he then boarded a small plane bound for New York.

Mangione was arrested on 9 December after he was spotted at a McDonald’s and charged with murder the next day.

On 18 December, he was charged with murder as an act of terrorism. He could face life in prison without parole if convicted. He could appear in New York state court for arraignment today or tomorrow.

Sky News previously reported how court documents said Mangione began shaking when officers asked if he had been in New York recently.

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Upon being arrested, authorities said Mangione was carrying the gun used to kill Mr Thompson, a passport, a fake ID and about $10,000 in US and foreign currency.

Mangione, a computer science graduate from a prominent Maryland family, was carrying a handwritten letter that called health insurance companies “parasitic” and complained about corporate greed, according to a law enforcement bulletin obtained by The Associated Press last week.

In Pennsylvania, Mangione has been charged with forgery and illegally possessing an unlicensed gun.