AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox


The U.S. government shutdown, now in its 22nd day and the second-longest in history, has drawn renewed scrutiny after President Donald Trump revealed a $130 million anonymous donation to fund military salaries during the funding lapse. The donor, identified by The New York Times as reclusive billionaire Timothy Mellon, has sparked legal and ethical debates over the legality of using private funds to sustain federal operations, a
said. Mellon, a longtime Trump backer who contributed $50 million to the president's 2024 re-election campaign, has remained largely out of the public eye despite his political influence.The Pentagon accepted the donation under its "general gift acceptance authority," with the condition that the funds be used for service members' salaries and benefits,
. However, legal experts warn the move may violate the Antideficiency Act, a law prohibiting federal agencies from spending unappropriated funds or accepting voluntary services without congressional approval, . The donation, which amounts to roughly $100 per active-duty service member, is a fraction of the $600 billion annual military compensation budget, . "This sounds like a half-baked idea that hasn't been vetted," said Todd Harrison, a defense budget analyst at the American Enterprise Institute.
The shutdown, triggered by a partisan stalemate over funding priorities, has disrupted critical programs. The Supplemental Nutrition Assistance Program (SNAP), which serves 42 million Americans, faces delayed or reduced November benefits as states like Pennsylvania and Texas warn they cannot distribute funds without congressional action,
. Meanwhile, the Trump administration has preserved politically aligned projects, including a White House ballroom construction effort, while deferring cuts to agencies like the Transportation Department, which halted $18 billion in New York infrastructure projects over "unconstitutional DEI principles," .Senate Majority Leader John Thune (R-S.D.) called for bipartisan action to end the crisis, but the 12th attempt to pass a short-term funding bill failed Monday, lacking the 60 votes needed,
. House Speaker Mike Johnson (R-La.) suggested the shutdown could "benefit" Republicans by enabling deeper cuts to the federal workforce. Vice President JD Vance, however, rejected claims of partisan targeting, stating, "We're not targeting federal agencies based on politics."Mellon's donation has drawn bipartisan criticism. Sen. Chris Coons (D-Del.) raised concerns about "anonymous donors funding our military," warning of risks to national security if foreign actors were involved, as earlier reporting noted. The Trump administration has defended the gesture as a patriotic act, with the president praising Mellon as a "substantial man" who "doesn't want publicity".
As the shutdown drags on, the Pentagon faces a logistical dilemma: using the donation could set a dangerous precedent, while refusing it risks leaving troops unpaid. With no resolution in sight, the crisis underscores the fragility of federal governance-and the growing reliance on private wealth to fill the gaps.
Quickly understand the history and background of various well-known coins

Dec.02 2025

Dec.02 2025

Dec.02 2025

Dec.02 2025

Dec.02 2025
Daily stocks & crypto headlines, free to your inbox
Comments
No comments yet