Key Takeaways
- The House of Representatives passed a bill ending the 43-day-long shutdown of the federal government.
- Once President Donald Trump signs the bill, shuttered government agencies can reopen and employees can be given back pay.
The longest and potentially most economically harmful government shutdown in American history is on its way to ending in its 43rd day.
The House of Representatives voted to pass a bill on Wednesday, funding the government until Jan. 30. That vote sets the stage for the shutdown to end after President Donald Trump signs the funding bill into law.
Representatives followed the lead of the Senate, which broke the impasse this weekend after moderate Democratic lawmakers joined Republicans to vote in favor of the funding bill.
The shutdown, which began Oct. 1, has been longer than the previous record shutdown of 34 days in 2018 and 2019.
What This Means For The Economy
The end of the shutdown, despite the lack of a resolution in its central conflict, could remove some of the uncertainty that has been plaguing the economy in recent months.
The shutdown delayed paychecks for federal workers, held back payment of food benefits for needy families, cancelled flights, halted the collection and reporting of crucial economic data and undermined consumer confidence among other ripple effects. Forecasters expect the economy to bounce back and make up much of the ground it lost once federal workers receive their back pay, but not without some permanent damage.
Although the shutdown is over, the conflict that triggered it remains. Democratic lawmakers initially blocked funding bills because they wanted to extend a health insurance subsidy that lowered premiums for Affordable Care Act insurance plans. That subsidy is now set to expire in January, driving up premiums by an average of $1,000 a month for those currently receiving the credits, according to an estimate by the Center on Budget and Policy Priorities, a progressive think tank.
The bill to reopen the government does not include an extension of the subsidies, as Democrats had demanded. The bill reopens the government for just over two months, setting up another potential showdown if the two sides do not reach an agreement before then.