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Federal operations began returning to normal after Congress passed a funding package and President Trump signed it into law on Wednesday, ending a 43‑day government shutdown in Washington, D.C. The legislation funds most federal agencies through Jan. 30 and includes three bills extending other programs through September 2026. Agencies reopened Thursday, with many federal employees returning to work and back pay scheduled on a staggered timetable beginning as soon as Sunday. The deal also secured a mid‑December vote on expiring Affordable Care Act tax credits that will affect millions of Americans next year.
Key Takeaways
- The shutdown lasted 43 days, ending when the House approved a Senate‑passed funding package and the president signed it into law.
- The agreement provides funding for most agencies through Jan. 30, 2026, and three appropriations through September 2026.
- More than 1.4 million federal employees went without pay; hundreds of thousands of essential workers continued to work during the shutdown.
- Back pay for many federal employees is slated to begin as early as Sunday, Nov. 15, with agency‑by‑agency processing through Nov. 19.
- The shutdown affected about 42 million federal food aid recipients and led to 670,000 furloughs, with roughly 4,000 agency workers facing potential layoffs.
- Administration economic estimates put the shutdown cost at about 15 billion dollars per week, totaling roughly 92 billion dollars in lost output; other damage estimates initially cited lower figures.
- Air travel disruptions began easing as transportation staff and controllers returned to duty; airline executives expect operations to normalize by the weekend.
Background
The standoff began in late September when House Republicans advanced a short‑term spending measure before the Oct. 1 deadline, but the Senate required bipartisan support to move funding. Democrats leveraged that leverage to press for action on expiring health insurance tax credits under the Affordable Care Act, making health policy a central bargaining chip. For weeks, the two parties exchanged political blame while lower‑level bipartisan conversations quietly explored compromise options.
Because Congress failed to pass long‑term appropriations in time, numerous federal functions curtailed or paused operations. Essential personnel in agencies such as the Department of Veterans Affairs, Health and Human Services and the Transportation Security Administration continued to work without pay; nonessential employees were furloughed. Cultural institutions that rely on federal appropriations, including many Smithsonian museums and the National Zoo, closed or reduced operations after running through prior‑year funds.
Main Event
The immediate trigger for the end of the shutdown was a Senate breakthrough over the weekend that produced a funding package acceptable to enough Democrats and Republicans to pass the upper chamber on Monday. The House then approved the Senate text, and the president signed the bill into law Wednesday night. Lawmakers included a provision to guarantee a Senate vote by mid‑December on restoring expiring Affordable Care Act premium tax credits, a concession that helped secure Democratic support.
Agencies began to reopen Thursday morning as Office of Personnel Management guidance said normal operating procedures were in effect in the Washington, D.C., area and employees were expected to report on time. Agency leaders issued operational notices about phased reopenings: for example, the Smithsonian announced staggered reopenings for major museums and the National Zoo across Friday and the following Monday, rather than a single day restart.
White House and OMB guidance outlined an agency‑by‑agency schedule for processing back pay. Departments including Health and Human Services, Energy, Veterans Affairs and the Army were projected to process paychecks on Sunday, while other agencies such as Education, State, Interior and Transportation were scheduled for Monday or the next pay cycle. The administration set a goal of resolving the backlog of payments by Wednesday, Nov. 19.
Analysis & Implications
The shutdown underscored how short‑term funding gaps can ripple across the economy and public services. Estimates from the administration, cited by economic advisers, attribute roughly 15 billion dollars of lost economic output per week to the closure, with a cumulative impact near 92 billion dollars over the 43 days. Independent assessments and sectoral damage estimates vary, but most agree the disruption reduced fourth‑quarter GDP relative to prior projections.
Public programs and private actors both absorbed costs: millions of SNAP recipients faced uncertain access to benefits, airlines incurred disruptions and downstream employers reported layoffs tied to reduced demand or interrupted federal contracts. The National Economic Council noted an estimated 60,000 non‑federal workers lost jobs as an indirect effect, highlighting the broader labor market consequences beyond federal payrolls.
Politically, the resolution resets pressure toward a second legislative confrontation over health care tax credits that expire at year end. If Congress fails to extend those credits, many consumers will face premium increases in 2026. Democrats secured a commitment to force a mid‑December vote in the Senate, but the outcome remains uncertain and could drive another high‑stakes negotiation before the new year.
Comparison & Data
| Metric | Reported figure |
|---|---|
| Duration of shutdown | 43 days |
| Federal food aid recipients affected | 42 million |
| Furloughed federal employees | 670,000 |
| Workers facing potential layoffs | 4,000 |
| Administration economic cost estimate | ~15 billion dollars per week; ~92 billion total |
The table summarizes key publicly reported figures. Different analyses may use alternate methodologies: some damage assessments focused on direct fiscal impacts, others captured broader GDP and supply chain effects. Readers should note that the administration estimate of 15 billion per week is a macroeconomic projection that aggregates lost output and other short‑term adjustments, while agency‑level operational impacts are tracked separately and vary by department.
Reactions & Quotes
Officials and stakeholders offered a mix of relief and caution as normal operations resumed.
We estimate roughly 60,000 private sector jobs were lost because of the shutdown, and the hit to GDP will likely shave about 1.5 percentage points off fourth quarter growth.
Kevin Hassett, National Economic Council Director
Hassett spoke to reporters at the White House, offering the administration s estimate of job losses and the expected GDP effect. His remarks framed the economic cost as substantial and lasting into the next quarter.
Federal agencies in the Washington, DC area are open and normal operating procedures are in effect. Employees are expected to begin the workday on time.
U.S. Office of Personnel Management notice
The OPM notice formalized the return to work for many employees in the capital region and provided agencies a baseline to coordinate pay processing and staffing. Agencies supplemented that guidance with internal timing for payroll actions.
Staff and air traffic controllers are back to work and will be paid soon; we expect the system to be back to normal by the weekend.
Ed Bastian, Delta Air Lines CEO
Bastian told CBS hosts he believed airline operations would normalize quickly after controllers and other transportation employees returned on duty and received pay. Airline executives warned of short‑term schedule reductions during the shutdown and welcomed the restoration of staffing.
Unconfirmed
- Precise final tallies of indirect private sector job losses remain subject to revision as agencies and independent economists reconcile data; the 60,000 figure cited by the National Economic Council is an administration estimate.
- Some reports of individual agencies processing timelines are provisional and may change as payroll systems reconcile hazard pay, overtime and benefit adjustments across multiple pay cycles.
Bottom Line
The immediate consequence of the agreement is a return to routine federal operations, a scheduled flow of back pay to employees and eased disruptions for services and travel. The funding patch buys several weeks to two months of breathing room for congressional leaders, but it also shifts the policy fight to health care tax credits that will expire at year end.
Economic and programmatic ripples will persist: payroll corrections, benefit restorations and recovery of delayed services will take weeks to complete in some agencies. Lawmakers face a compressed calendar to address the ACA tax credits and other funding priorities, making December a potential flashpoint for renewed contention.
Sources
- CBS News live updates (news)
- U.S. Office of Personnel Management (official agency notice)
- White House Office of Management and Budget (official guidance and payroll coordination)
- Delta Air Lines statement (corporate comment)