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US Government Shutdown Nears End After Record 41 Days

The Senate passed a temporary funding measure 60-40 on Monday, bringing the record-setting 41-day US government shutdown close to resolution. Eight centrist Democrats broke party ranks to support the deal, which now heads to the Republican-controlled House, where Speaker Mike Johnson expects quick passage before reaching President Trump's desk.

Key Deal Terms:

  • Funds government through January 30 (most agencies) and September 30 (select departments)
  • Drops Democratic demand for Affordable Care Act subsidy renewal
  • Includes Republican promise for Senate vote on Obamacare credits by mid-December
  • Provides back pay for federal workers and prohibits layoffs through January 30

Political Fallout:

  • Progressive Democrats furious over centrist capitulation, calling deal "pathetic" and "terrible mistake"
  • House Democratic leader Hakeem Jeffries opposes the measure
  • Deal highlights limited Democratic leverage in Republican-controlled Washington

Economic Impact:

  • Flight disruptions and food aid delays affecting 42 million SNAP recipients are expected to persist
  • Federal government backlogs likely for weeks as agencies reopen
  • Air travel normalization could take days

Market Implications: Resolution removes major uncertainty overhang, though operational disruptions will continue short term. The deal demonstrates Republican negotiating strength while preserving popular Obamacare subsidies as a future political battleground with 24 million Americans facing potential premium increases.

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