After 40 days of federal paralysis, the Senate made a decisive move Sunday night. It voted 60-40 to start debate on a budget package. The bill combines a continuing resolution through January 30, 2026, with full-year funding for the Departments of Agriculture/FDA, Veterans Affairs, military construction, and the legislative branch.
While not ending the shutdown, the vote marks the first clear route to reopening the government.
Both chambers must still definitively approve the bill—amended from a vehicle already passed by the House—before transmitting it to the president for enactment.
The compromise includes full funding for the three appropriations bills listed earlier this fiscal year.
- It also temporarily extends the funding of other agencies through January 30, 2026. Furloughed employees will return to work with back pay. No workforce reductions will occur before February.
Senate Republicans have committed to holding a December vote on extending ACA (Obamacare) tax credits that expire at the end of the year—a major sticking point for Democrats.
Majority Leader John Thune hailed the vote as “a good vote” and said he hopes to expedite proceedings starting Monday, provided he can secure unanimous consent to compress the timelines.
President Donald Trump told reporters, “We are close to ending the shutdown.” These signals suggest a rapid resolution if the House also acts.
The vote came at a political cost.
Eight Democratic caucus members, along with Angus King, agreed to move forward without an immediate ACA credit extension. They are relying on the promised December vote. Progressives in both chambers resisted this approach, fearing that higher health insurance premiums would result if the extension fails by December 31.
Chuck Schumer voted “no,” as did several progressives. Influential House members, including Hakeem Jeffries, are threatening to oppose the package unless the extension is secured legislatively.
Senate Republicans, including Rand Paul, Mike Lee, and Ron Johnson, pushed for their priorities. The Thune-led majority believes it now has the necessary votes to complete the package. Reuters reports that the administration is exploring direct healthcare payments as an alternative to ACA subsidies. This debate will continue, even if the government reopens.
Over six weeks, the crisis has forced hundreds of thousands of federal employees to go without pay, disrupted SNAP food assistance distribution, and slowed public services. In air travel, the FAA reduced traffic by up to 10% at 40 major airports to relieve exhausted, unpaid controllers, triggering a cascade of cancellations and delays.
Markets and business groups, concerned that an extended crisis would impact fourth-quarter growth, welcomed Sunday’s vote as a sign that tensions were easing. Bloomberg reported Monday morning that Wall Street trended positive, hoping for a swift reopening.
What Happens Next? Landing Scenarios
Two paths are emerging:
Fast track: The Senate fast-tracks the package, sending it to the House within days. The House passes it with a coalition of Republicans and moderate Democrats. The president signs, enabling agencies to reopen before the end of the week.
Slow track: Extended debate in the Senate or the House delays passage, prolonging the shutdown for several more days.
The fight over ACA credits remains unresolved. Democrats like Shaheen, Hassan, and King support reopening first and negotiating health care before December 31. Trump’s team is open to reforms but challenges current subsidies. The White House prefers direct payments to households.
Politically, the Senate majority has demonstrated its ability to rebuild a coalition of convenience after more than a month of setbacks. For Democrats, the promise of a scheduled ACA vote provides leverage: it puts pressure on the presidential camp without prolonging a blockage that weakens households (food assistance), disrupts air travel, and erodes Republicans’ aim to end the crisis without quickly giving in to Democrats’ top demand. They aim to demonstrate that clear and predictable budget management can be restored to predictability.
