After a record-setting 43 days, the House has passed legislation officially ending the government shutdown. Passing by a 222-209 vote, the funding package will keep the government open through the end of January, while programs covering military construction, veterans’ affairs, and agriculture will remain funded through September 2026.
The measure, which the President has signed, guarantees full back pay for furloughed employees and directs agencies to rescind all reduction-in-force (RIF) notices issued since October 1. It also prohibits new layoffs through January 30, allowing time for agencies to restore operations and stabilize their workforces after more than six weeks of disruption.
In addition to reopening shuttered agencies, the bill includes a provision ensuring a standalone vote in December on renewing federal health care tax credits under the Affordable Care Act, set to expire at the end of the year. Studies suggest that without renewal of the subsidies, premiums could rise by as much as 26%, making healthcare unaffordable for many. This guarantee helped secure crucial support from moderate Democrats who had previously withheld votes due to concerns over the loss of these benefits.
A Congressional Budget Office (CBO) report released on October 29 estimated that the 43-day government shutdown could lead to a 1.5% temporary drop in real GDP, with most losses expected to be recovered in subsequent quarters. However, the CBO projected that roughly $11 billion in economic activity may be permanently lost, largely due to halted federal contracts, delayed services, and reduced consumer spending among federal workers during the closure.
For federal employees who were either furloughed or working without pay, the passage of this bill brings long-awaited relief. It restores guaranteed pay, reverses recent layoffs, and provides agencies with temporary funding to rebuild operations. But as workers return to sift through 6 weeks of email and voicemail, they’ll be well aware that, for most departments, the stopgap measure extends only through January 30. Hopefully, this will provide enough breathing room to negotiate a longer-term spending agreement and avoid another disruption.
