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Government Shutdown Plays Out Like Puppet Theater
Senators reached a bipartisan agreement Sunday aimed at ending the lengthy U.S. government shutdown, according to sources familiar with the deal. The Senate advanced the measure in a 60–40 late-night vote, with further approval needed from the House and President Donald Trump before the government can reopen—a process expected to take several days.
The proposal includes a “minibus” package funding several departments, including Agriculture, through next fall, and a continuing resolution to fund the rest of the government through January 30. It also secures funding for the Supplemental Nutrition Assistance Program through next September and reverses Trump’s planned federal worker layoffs during the shutdown.
In a key Democratic concession, the deal omits an extension of Affordable Care Act subsidies, though senators agreed to hold a vote on that issue by mid-December. The agreement was negotiated by Sens. Jeanne Shaheen, Maggie Hassan, and Angus King, with backing from Senate GOP Leader John Thune and the White House. Thune expressed optimism that the deal would finally end the 40-day shutdown, which has left federal workers unpaid and disrupted public services.
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After a 41-day impasse, the Senate approved reopening the government in a 60–40 vote, with eight Democrats crossing party lines to back a short-term funding package alongside Republicans. The measure restores full operations, ensures back pay for furloughed employees, and financing of key agencies, including the FDA and USDA that has everyone chasing their tails, through January 30, 2026. It also locks in SNAP benefits through September 2026 and commits to a December vote on extending ACA subsidies. While the deal halts immediate economic bleeding, it sidesteps deeper fiscal fractures.
The shutdown stopped publications from the BLS, BEA, and other agencies, depriving markets and policymakers economic gauges for nearly 7 weeks. Many of these gauges, however, are total garbage crafted for political purposes. The 2025 blackout that mirrored past episodes, hobbled growth and crushed confidence. Expect a torrent of delayed reports on jobs, inflation, and GDP will hit within weeks, likely igniting market swings as gunslinger traders attempt to short-term trade rather than surf.
The latest shutdown highlights the economy's reliance on uninterrupted data flows and government functions. Every shutdown injects uncertainty, curbing spending and decisions in ways akin to elevated interest rates. While reopening brings short-term relief, it exposes the risk of political gridlock that appears to be a permanent fixture in the U.S. Every stopgap solution only kicks the can down the road a little longer. Hate to say it, but the core economy is slowly running out of road. It's time to prepare.
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