Lead
On Sunday the U.S. Senate narrowly advanced a bipartisan compromise designed to reopen the federal government after a 40-day shutdown that began when funding expired on 1 October. The procedural vote reached the 60-vote threshold needed to move forward, but the package does not include the Affordable Care Act premium tax credits that Democrats had insisted be extended. Many Senate Democrats and a large portion of House Democrats oppose the measure, which still must clear the House and be signed by the president before agencies can fully resume normal operations. If enacted, the bill would restore pay, reverse recent federal firings and authorize spending through 30 January 2026.
Key takeaways
- The Senate advanced the compromise by a 60-vote procedural threshold on Sunday evening; nearly all Republicans and eight Democrats supported it.
- The shutdown began when funding lapsed on 1 October and has lasted 40 days, leaving more than 700,000 federal workers furloughed or working without pay.
- The measure funds the government through 30 January 2026 and includes retroactive pay and protections against further federal layoffs through January.
- The bill omits extension of Affordable Care Act premium tax credits; one study cited in debate projected a 26% average premium rise if credits expire.
- Three appropriations bills are folded into the compromise, covering departments including Agriculture and Veterans Affairs for fiscal 2026.
- Transportation disruptions have been acute: more than 2,500 flights were canceled on Sunday amid controller staffing strain and capacity reductions.
- Senate Republican leader John Thune and other negotiators signaled willingness to consider ACA credits later, with a promised vote by the second week of December.
- House GOP leadership and many House Democrats have already signalled resistance; the bill faces an uncertain path in the House and to final enactment.
Background
The shutdown began when Congress failed to pass a funding authorization that expired on 1 October. Republican control of the White House, Senate and House, combined with deep partisan disagreement over spending priorities and health-care subsidies, set the stage for a protracted stalemate. For weeks Senate Republicans, led procedurally by John Thune, pressed a GOP-authored stopgap that repeatedly failed to attract sufficient Democratic support in the upper chamber. Democrats used the lapse in funding to press for an extension of Affordable Care Act (ACA) premium tax credits, arguing the subsidies are vital to keep coverage affordable for millions heading into next year.
Over the 40 days of the funding lapse, the federal workforce and services experienced mounting strain: more than 700,000 workers were furloughed or worked without pay, food banks and social services saw rising demand, and the administration paused payments from the nation’s largest food aid program for the first time. Transportation officials reported controller staffing problems that led to a sharp reduction in commercial air capacity and thousands of canceled flights. These operational disruptions increased pressure on lawmakers to reach at least a temporary agreement to restore funding and stabilize services.
Main event
After days of negotiations among a small group of senators from both parties, lawmakers drafted a compromise that funds the government through 30 January 2026 and reverses the White House’s firings of certain federal employees carried out after the lapse. The measure also guarantees retroactive pay for furloughed workers and those who stayed on duty during the shutdown, and explicitly bars additional layoffs through January. Negotiators folded three appropriations bills into the package, providing spending authority for agencies including Agriculture and Veterans Affairs for the 2026 fiscal year.
The Senate vote was tightly contested. The procedural motion to advance the bill received exactly 60 votes — the number needed to overcome a filibuster — with nearly unanimous Republican support and eight Democrats joining. Most Senate Democrats opposed the deal because it leaves ACA premium tax credits unresolved. Democratic leader Chuck Schumer publicly said he could not back a resolution that ignored the health-care crisis facing families, underscoring the split within his caucus.
Senator John Thune, the Senate Republican leader who managed the floor process, said he would permit a vote on legislation addressing the ACA credits by the second week of December, but he framed that move as contingent on reopening the government first. Several retiring senators who helped broker the compromise, including New Hampshire’s Jeanne Shaheen, described the offer as the only realistic option on the table after weeks of negotiations. House Speaker Mike Johnson, who had kept the House largely out of session, signaled the chamber could vote this week but has also publicly resisted bringing an ACA-credit measure to the floor.
Analysis & implications
Restoring government funding and undoing federal firings will immediately relieve pressure on many public services and on federal employees who went weeks without pay. Retroactive pay provisions will partially mitigate financial harm to furloughed staff, though operational disruptions and backlogs will take longer to clear. For sectors such as air travel and food assistance, the agreement reduces the immediate risk of further service curtailments, but planners warn that recovery will require time and additional resources to handle accumulated demand.
The omission of ACA premium tax credits from the package leaves a major policy and political problem unresolved. Analysts cited during the debate warned that without an extension, marketplace premiums could rise sharply — one study forecasted an average 26% increase — raising costs for millions of enrollees and shifting pressure back onto Congress. Politically, Democrats have used the credits as leverage; conceding them now could depress the party’s standing with voters who view health care as a core issue, while Republicans risk a backlash if voters perceive they let premiums spike.
Legally and procedurally, the agreement still faces two major hurdles: passage in the House and the president’s signature. Even if the House approves the Senate text, the White House must sign to enact it. Speaker Johnson’s earlier decision to keep the House out of session until the Senate acted was part of a strategic push; the same dynamics mean the House floor could see intense intra-party fights. If the House rejects the measure or substantially amends it, Congress could return to protracted negotiations and risk a fresh lapse.
Comparison & data
| Metric | Figure |
|---|---|
| Shutdown start | 1 October 2025 |
| Shutdown length (so far) | 40 days |
| Senate votes to advance | 60 (threshold) |
| Funding expiration in compromise | 30 January 2026 |
| Federal workers furloughed/without pay | ~700,000 |
| Flights canceled (Sunday) | 2,500+ |
| Projected ACA premium rise (study) | ~26% average |
The table highlights the immediate scale of disruption and the narrow Senate margin that moved the bill forward. The contrast between operational harm to services (canceled flights, paused food aid) and the political bargaining over policy instruments such as ACA credits helps explain why negotiators prioritized reopening agencies even without resolving longer-term health-care costs.
Reactions & quotes
Democratic leaders framed their opposition around the missing health-care subsidies and the perceived failure to protect families from rising premiums. They emphasized that reopening the government without the credits amounted to accepting a future hit to consumers’ coverage costs.
“I cannot in good faith support a resolution that fails to address the healthcare crisis facing families,”
Senate Democratic leader Chuck Schumer
Senator Schumer’s remark summed up why most Democrats rejected the package: the compromise would restore government operations but leave a politically sensitive and materially consequential issue unresolved. That stance helped drive unified Democratic opposition in both chambers despite public impatience with the shutdown’s effects.
Republican negotiators argued restoring basic operations and pay was the immediate priority, and that discussions on subsidies could follow once the government reopened. Several Republican and centrist Democratic senators who pragmatically backed the deal emphasized the urgency of resuming services and stabilizing federal payrolls.
“After 40 long days, the time to act is now,”
Senator John Thune (Republican leader)
Thune framed the vote as a necessary step to end operational harm, pointing to air travel disruptions and unpaid staff as reasons to clear the procedural hurdle. He also pledged a later vote on ACA credits, signaling continued negotiations but not guaranteeing enactment.
Unconfirmed
- Whether the House will pass the Senate compromise in the coming days remains uncertain; leadership signals are mixed and votes could be contentious.
- It is unconfirmed whether a later standalone bill to restore ACA credits will reach the House floor or secure the votes needed for enactment even if the Senate approves it.
- The precise nationwide premium impact of allowing ACA credits to lapse is model-dependent; the cited ~26% rise is an average projection and may differ by state and insurer.
Bottom line
The Senate’s narrow advance of the funding bill ends one immediate phase of the crisis by prioritizing a government reopening, retroactive pay and temporary protection against layoffs through January 2026. However, the exclusion of Affordable Care Act premium tax credits leaves a major policy fight unresolved and preserves significant political risk for both parties heading into winter. The measure’s future hinges on a contested House vote and the White House’s signature; either could take days and provoke further partisan clashes.
For federal employees and affected service sectors, the compromise offers short-term relief but not a return to full normalcy; operational backlogs and financial losses accrued during the 40-day closure will take time to address. Policymakers face a choice between accepting a stopgap that restores services now and continuing to negotiate broader policy fixes — notably for health-care affordability — that have large, measurable impacts on households nationwide.
Sources
- The Guardian (news report) — original coverage of the Senate vote and negotiations.