After 40 days of political gridlock, lawmakers in the U.S. Senate have reached a deal to reopen the federal government, clearing the way for the longest shutdown in U.S. history to end, while setting in motion a complex process to restart suspended programs, pay furloughed workers, and repair economic damage.
The agreement also includes three full-year appropriations bills wrapped into one “minibus,” which covers the Department of Agriculture, Department of Veterans Affairs, military construction, the Food and Drug Administration, and the legislative branch.
The House is expected to pass the legislation this week, with President Donald Trump indicating he will sign it.
Federal Workforce Returns
Roughly 1.25 million federal employees have missed paychecks since Oct. 1, the day the shutdown began. Once Trump signs the bill into law, agencies will recall furloughed staff as soon as practicable and begin issuing back pay for the entire shutdown period, as required under the Government Employee Fair Treatment Act of 2019.That law guarantees retroactive pay to both furloughed and “excepted” workers who stayed on the job without pay. The Senate-approved measure also reverses layoffs ordered via reduction-in-force (RIF) notices issued during the shutdown and pauses new ones through the funding window, stabilizing federal employment rolls after weeks of uncertainty.
Federal contractors, however, are not covered. While contract work can resume immediately, contract employees will not receive compensation for missed work—making the shutdown’s financial toll permanent for thousands.
Economic Impact
The 40-day lapse left a mark on an economy already strained by high interest rates and other factors. Flights were canceled, government contracts were delayed, and some food-aid recipients saw their benefits disrupted.“Although most of the decline in real GDP [gross domestic product] will be recovered eventually, CBO estimates that between $7 billion and $14 billion (in 2025 dollars) will not be,” the agency said, adding that fourth-quarter GDP will be lower than it would have been in the absence of a shutdown.
Health Care Subsidy Fight Postponed
The deal leaves unresolved one of the Democrats’ central demands: an extension of the expiring Affordable Care Act (ACA) premium tax credits.Under the compromise agreement, the Senate will hold a vote in mid-December on whether to extend the subsidies, which otherwise expire Jan. 1. The vote is not expected to reach the 60-vote threshold needed for passage.
Food Assistance to Resume
The shutdown triggered a tangle of court orders and agency directives that left many states unsure whether they could issue full Supplemental Nutrition Assistance Program (SNAP) benefits.The reopening bill funds SNAP and the related Women, Infants, and Children program through Sept. 30, 2026, restoring normal operations and state administrative funding.
Households in some states, such as Hawaii and New Jersey, have already received full monthly allocations, while others—including Nebraska and West Virginia—are still waiting. Full funding should normalize payments, but the catch-up could be uneven.
Flights and Transportation
Air travel will remain turbulent for several days even after reopening.Transportation Secretary Sean Duffy said last week that the FAA will lift those restrictions as quickly as possible, but that the agency will continue flight reductions until staffing levels stabilize among air traffic controllers, and after officials can ensure optimum flight safety.
Other Key Impacts
National parks and museums are expected to reopen gradually as furloughed workers return to employment and maintenance backlogs are cleared.Federal courts, immigration hearings, and regulatory enforcement will resume normal schedules after operating at limited capacity for weeks.
Small-business, housing, and farm-support programs—such as Small Business Administration and Department of Agriculture loans and Federal Housing Agency mortgage processing—will restart and begin clearing a backlog of applications and delayed grants.







