Historic Government Shutdown Ends—But Another Budget Fight Looms
The longest government shutdown in U.S. history concluded after 43 days as the House of Representatives passed a funding bill, now awaiting President Trump's signature. Federal agencies will reopen, and employees will receive back pay, though the underlying budget dispute remains unresolved.
Economic Ripple effects have been severe: delayed wages for 800,000 workers, suspended food benefits, canceled flights, and disrupted economic data collection. While immediate relief is expected, the standoff's resolution merely postpones another potential clash until January 30.
Markets may interpret this as a temporary reprieve from uncertainty, though the structural political divide persists. The shutdown's economic damage—estimated at $11 billion—will partially reverse as federal operations resume, but confidence shocks linger.