Government Shutdown Ends

The recent shutdown of the federal government officially came to a close on November 12, 2025, after a record‐setting 43 days. The impasse began when Congress failed to pass the required appropriations or a continuing resolution to fund government operations as of October 1. Legislation was finally approved by the Senate and then the House, and signed by the President, restoring funding and resuming operations that had been halted.

The shutdown stemmed from deep divisions in Congress over spending levels, continuing resolution design, and particularly the extension of health-insurance tax credits under the Affordable Care Act (ACA). Senate Democrats opposed the Republicans’ spending bill because it omitted the extension of those subsidies, while Republicans refused to negotiate on them before reopening the government. The resulting stalemate meant some federal agencies furloughed hundreds of thousands of employees, and others worked without pay.

Now that operations are back online, many immediate disruptions are being undone, federal workers will receive back pay, benefit programs are being reinstated, and services are resuming. However, while the crisis is over for now, it is not a full resolution of underlying policy issues. Key elements like the ACA subsidy extension remain unresolved and may trigger another budget showdown unless addressed. The economic impact is also notable: estimates suggested the shutdown could cost the economy billions in lost output and still leave some irreversible damage even after reopening.