“We will come up with another solution,” he said.
Government funding is due to expire at midnight on Friday.
If lawmakers fail to extend that deadline, the U.S. government will begin a partial shutdown that would interrupt funding for everything from border enforcement to national parks and cut off payments for more than 2 million federal workers.
The U.S. Transportation Security Administration warned that travellers during the busy holiday season could face long lines at airports.
“Congress must get rid of, or extend out to, perhaps, 2029, the ridiculous Debt Ceiling. Without this, we should never make a deal,” Trump said in a post on Truth Social hours after the Bill failed.
Thursday’s unsuccessful Bill largely resembled the earlier version that Mr Musk and Trump had blasted as a wasteful giveaway to Democrats.
It would have extended government funding into March and provided $100 billion in disaster relief and suspended the debt.
Republicans dropped other elements that had been included in the original package, such as a pay raise for lawmakers and new rules for pharmacy benefit managers.
At Trump’s urging, the new version also would have suspended limits on the national debt for two years – a manoeuvre that would make it easier to pass the dramatic tax cuts he has promised.
Johnson before the vote told reporters that the package would avoid disruption, tie up loose ends and make it easier for lawmakers to cut spending by hundreds of billions of dollars when Trump takes office next year.
“Government is too big, it does too many things, and it does few things well,” he said.
Democrats blasted the Bill as a cover for a budget-busting tax cut that would largely benefit wealthy backers such as Mr Musk, while saddling the country with trillions of dollars in additional debt.
“How dare you lecture America about fiscal responsibility, ever?” House Democratic leader Hakeem Jeffries said during floor debate.
