US Senate deal paves way for end to record-breaking government shutdown

A bipartisan compromise cleared a key Senate hurdle late Sunday, raising hopes that the longest government shutdown in US history could end within days after 41 days of paralysis.
The agreement would restore funding to federal agencies through 30 January 2026, providing immediate relief to hundreds of thousands of unpaid workers, low-income families facing disrupted food aid, and travellers hit by thousands of cancelled flights.
Eight moderate Democrats joined Republicans to advance the short-term spending bill, overcoming a 60-vote threshold required for most legislation. The deal was brokered by Senators Maggie Hassan and Jeanne Shaheen of New Hampshire, alongside independent Angus King of Maine.
“For over a month I’ve made clear that my priorities are to reopen government and extend the ACA enhanced premium tax credits. This is our best path toward both goals,” Shaheen wrote on X.
The compromise sets up a separate December vote on extending health insurance subsidies for 24 million Americans, due to expire at year-end. It does not, however, include binding restrictions on President Donald Trump’s unilateral spending cuts, which have already cancelled billions in congressionally approved funds and reduced the federal workforce by hundreds of thousands.
The breakthrough follows Democratic gains in last week’s elections in New Jersey, Virginia, and New York City, where a democratic socialist was elected mayor. Progressive Democrats criticised the eight senators who backed the deal, warning there is no guarantee the ACA measure will pass either chamber.
House Speaker Mike Johnson said he would call his chamber back from recess to vote “as quickly as possible”. “It appears this morning that our long national nightmare is finally coming to an end,” he told reporters.
The Senate must still agree to expedite final passage; without unanimous consent, procedural steps could push a vote into next weekend. President Trump is expected to sign the bill if it reaches his desk.
White House economic adviser Kevin Hassett warned that prolonged closure risks negative GDP growth in the fourth quarter, particularly if air travel does not normalise before the 27 November Thanksgiving holiday.
US stocks rose on Monday as investors welcomed signs of progress. The federal debt is on track to increase by roughly $1.8 trillion annually, against a current total of $38 trillion.