U.S. Government Shutdown Ends: 42 Days of Disruption Finally Over

The U.S. House of Representatives finally brought an end to the long-running government shutdown, passing a short-term funding bill after...

Quick overview

  • The U.S. House of Representatives ended a 42-day government shutdown by passing a short-term funding bill with a vote of 222 to 209.
  • President Trump is expected to sign the bill, allowing federal operations to resume and providing back pay to federal employees.
  • Key services, including SNAP benefits for 43 million Americans, will be restored, although some issues like flight cancellations persist.
  • Reactions to the resolution are mixed, with concerns about the temporary nature of the fix and its impact on health insurance premiums.

The U.S. House of Representatives finally brought an end to the long-running government shutdown, passing a short-term funding bill after 42 days of stalemate. In the end, the tally was 222 to 209, with two Republicans jumping ship and six Democrats surprisingly voting in favor of the measure.

President Donald Trump is expected to put his John Hancock on the bill at 9:45 p.m. ET at the White House, and as far as the feds are concerned, normal operations resume nationwide. The whole thing started back on October 1st, when a dispute over tax credits for the Affordable Care Act (ACA) hit a roadblock, leaving 20 million Americans hanging and relying on health insurance subsidies to get by.

All that tension had been building up in the House after the Senate managed to broker a deal. The compromise basically lets them have their way and includes a vote in December on ACA tax credits—a way to get around the impasse that has been holding up federal funding and causing all sorts of problems.

The Impact on Government Operations

Now that this is all over, the thousands of federal employees who hadn’t been paid in weeks will get their back pay, and the essential services we need will get back up and running. Airports still have problems, though, with nearly 6 percent of flights cancelled—and if things keep going like this, they could be looking at a 10 percent cancellation rate.

Some of the key services that are getting back online include

  • 43 million Americans are going to be able to get their SNAP benefits
  • Federal employees will finally get the back pay they’re owed
  • And all the other essential agencies and regulatory services are getting back to work

The shutdown also hit the wider markets pretty hard—Bitcoin and Ethereum both took a hit. What’s more, they are sticking to the story that all this uncertainty is bad for business.

Reactions to the Resolution

As you can imagine, reactions to the bill were mixed. House Majority Leader Steve Scalise was ranting on about the democrats being to blame for all this and how they’d put American workers at risk. But then there was Representative Rosa DeLauro, who pointed out that this is just a temporary fix and that millions of Americans are still at risk of seeing their health insurance premiums go up —or, even worse, losing their coverage altogether next year.

And as for the markets, they have been holding their breath, waiting for this all to get sorted out. The sec went up a bit before the vote, indicating that things might actually get back to normal after all. Analysts say that this being over helps restore some confidence in the U.S. government’s ability to manage its finances, and that things like travel, social programs, and even digital assets might start to return to normal.

This whole 42-day saga is finally over, so we can all breathe a sigh of relief. Normal government operations resume, federal workers get the help they need, and we now have a blueprint to avoid future chaos.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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