U.S. Senate Moves Towards Deal to End Federal Government Shutdown

What Happened?

A new budget proposal to end the U.S. federal government shutdown moved a step closer to reality after the measure passed a key Senate hurdle this weekend. The measure passed the Senate in a 60 to 40 vote, with seven Democrats and one Independent joining all Republicans. If passed by the House and signed by the President, the bill would provide funding for the federal government through the end of January 2026.

The new bill did not include an extension on subsidies for the Affordable Care Act (ACA), but Senate Republicans have promised a vote on new extensions in December after the government reopens.

Why it Matters

The current federal government shutdown is now the longest in American history, and even with the new Senate deal, it may still be several days before the impasse finally comes to an end. Progressive Democrats were angry that the stopgap bill did not include extensions for the ACA healthcare subsidies, and many Republicans were unhappy at the spending levels included in the measure. At least ten Republican Senators have signaled they are open to extending ACA subsidies, but that vote won’t take place until December.

According to the Washington Post, the new deal would reverse 4,000 federal layoffs the Trump administration attempted to implement earlier in the shutdown and prevent future layoffs through the end of January. Under the terms of the agreement, Congressional lawmakers would also provide appropriate funding for the Supplemental Nutrition Assistance Program, also known as SNAP or food stamps, through September 2026.

While the Senate bill would end the government shutdown in the short term, in the long run, it basically kicks the can down the road on many of the key issues which caused the stoppage in the first place. Instead of solving underlying problems, it has become standard practice for Congress simply to keep delaying them as many times as possible. Absent any real progress towards solutions on the root causes of the current shutdown, at the end of January, Congress would be right back where it started.

For the most part, President Trump has stayed out of the shutdown debate, though recently he suggested that ACA subsidies be sent directly to the American people instead of being paid to health insurance companies. That would require a significant revision of the ACA law, which, given the already existing divisions in Congress, seems unlikely.

How it Affects You

The new Senate bill would give backpay to air traffic controllers and other furloughed federal workers, which means that a travel nightmare for Thanksgiving might still be avoided for the commercial aviation industry. The Senate bill still needs to be approved by the House, where passage is not guaranteed.