Federal Crisis Averted: US Senate Moves to End Government Shutdown

The United States Senate has taken a critical step toward ending the longest government shutdown in U.S. history, which spanned 40 days. On Sunday, senators advanced a compromise bill designed to restore government funding and reinstate federal employees who had been laid off during the shutdown. The legislation passed with the exact 60 votes required, primarily supported by Republicans and eight moderate or retiring Democrats. The measure reauthorizes government funding through January 30, 2026, retroactively compensates both furloughed and unpaid federal workers, and incorporates appropriations bills for key departments such as agriculture and veterans affairs.
However, the bill has drawn sharp criticism from Democrats due to its omission of Affordable Care Act (ACA) tax credits, which are set to expire at year-end. Democratic leaders argue that letting these subsidies lapse would raise premiums by an average of 26%, making healthcare unaffordable for millions of Americans. Senate Majority Leader Chuck Schumer called the omission a crisis, while House Minority Leader Hakeem Jeffries condemned the measure as failing to protect families. Progressive voices, including Senators Elizabeth Warren and Bernie Sanders, described the compromise as a “policy and political disaster,” highlighting widespread concern over the bill’s healthcare provisions.
The partisan divide complicates the bill’s path forward. Republican leaders, including John Thune and House Speaker Mike Johnson, have indicated that a separate vote on ACA tax credits may occur only after the government reopens, creating uncertainty about when healthcare affordability will be addressed. Democrats, including Senator Adam Schiff, warned that broader proposals from the Trump administration could further undermine the ACA and pre-existing condition protections.
The 40-day shutdown has caused widespread disruption. Over 700,000 federal workers were furloughed, while hundreds of thousands more worked without pay. Essential services, including food aid programs and air travel, were heavily affected, with over 2,500 flights canceled on a single day due to staffing shortages among air traffic controllers. Economic advisers warned that prolonged shutdown effects, especially around the Thanksgiving period, could depress fourth-quarter growth.
With the Senate-approved compromise now pending in the House of Representatives, the timeline for a complete government reopening remains uncertain. While procedural progress has been made, political tensions over healthcare and other provisions indicate that final approval may face a challenging and contentious process. The outcome will not only determine the immediate functioning of the federal government but also signal the political priorities and leverage of both parties heading into 2026.
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