The bill, passed late Tuesday night by the U.S. Congress after weeks of tense negotiations, was approved by a narrow margin222 votes in favor and 209 against. The legislation restores funding to key federal agencies and releases overdue payments to government employees, marking an end to weeks of paralysis that crippled Washington.
“Today we are sending a clear message that we will never give in to extortion,” Trump said before signing the bill in the Oval Office, flanked by Republican lawmakers who applauded the move. The President accused Democrats of holding the federal budget “hostage” over their insistence on extending subsidies under the Affordable Care Act (ACA), commonly known as Obamacare.
The Standoff and Its Fallout
The shutdown began when Congress failed to agree on the annual appropriations bill — the U.S. equivalent of a national budget after both chambers clashed over healthcare subsidies and federal spending caps.
During the shutdown, nearly 750,000 federal employees were either furloughed or forced to work without pay. Essential services such as airport security, law enforcement, and border control continued under strained conditions, while non-essential departments, including NASA and the National Parks Service, were largely shut down.
Food assistance programs suffered severe disruptions, with 42 million Americans temporarily losing access to Supplemental Nutrition Assistance Program (SNAP) benefits. The National Nuclear Security Agency also furloughed 1,400 staff members, raising concerns about oversight of critical national assets.
Major financial losses were reported across sectors from tourism to air travel as delayed operations and unpaid workers rippled through the economy.
Political Battle Over Obamacare Subsidies
At the heart of the deadlock was a dispute over ACA subsidies. Democrats demanded an extension of financial support for low- and middle-income Americans to purchase health insurance. Republicans, led by Trump, opposed the measure, calling it a “gift to insurance companies.”
“Instead of giving money to corporations, we should give it directly to the people so they can buy the insurance they want,” Trump wrote on TruthSocial, reiterating his opposition to the ACA model.
Democrats countered that ending subsidies would double insurance premiums and push millions of Americans out of coverage. Currently, about 24 million citizens benefit from ACA tax credits, covering nearly 93% of those eligible.
Relief for Federal Workers
The bill signed by Trump also includes provisions to protect federal employees from layoffs until January 30, 2026 a significant concession to unions representing civil servants. All affected workers, including military personnel, Border Patrol agents, and air traffic controllers, will receive full back pay.
At the start of Trump’s second term, the federal civilian workforce numbered approximately 2.2 million. His administration has pursued a policy of downsizing government employment, with projections suggesting up to 300,000 positions could be eliminated by year’s end.
Historical Context and Political Implications
The 43-day shutdown surpasses the 35-day closure of 2018–19 also under Trump as the longest in U.S. history. Previous presidents, including Ronald Reagan, Jimmy Carter, and Bill Clinton, also faced multiple shutdowns during their terms, though none lasted as long.
As operations resume, analysts say the standoff has deepened partisan divides in Washington ahead of the 2026 midterm elections. Trump, while claiming victory for breaking the impasse, urged supporters to “remember who shut down your government.”
Federal departments are expected to reopen by Friday, with agencies directed to prioritize salary disbursements and the resumption of suspended programs. For millions of Americans, the end of the shutdown offers relief but the political aftershocks are likely to linger.
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