After a protracted 43-day shutdown of the U.S. federal government — the longest in history — the Senate and House passed a funding bill that President Donald Trump signed, restoring operations and pay for millions of federal workers. The compromise covers funding through January 30, 2026, and initiates back pay and re-entry of key agencies, though major issues like healthcare subsidies and long-term fiscal reform remain unresolved. Economic output, travel sectors and government-contracted services all stand to benefit from resumed operations, yet the deal leaves open further budget battles.
Why it matters
Resolving the shutdown removes a major drag on growth and investor sentiment, but lingering fiscal debates mean future risk remains.