Government shutdown: House will vote on Senate deal ASAP, Speaker Johnson says
News Summary
U.S. House Speaker Mike Johnson has called for House members to return to Washington, D.C., as soon as possible to vote on a Senate deal that would end the longest government shutdown in U.S. history, which began on October 1, 2025. Johnson expects House votes to occur this week, contingent on the Senate fully approving the deal by then. The Senate agreement would fund the government through the end of January, reverse all shutdown-related layoffs of federal employees, and guarantee normal salaries for all federal workers during the shutdown. It also includes provisions for a bipartisan budget process and aims to prevent the White House from using continuing resolutions (CRs) to fund the government. The deal does not immediately extend enhanced Affordable Care Act (ACA) tax credits, a key Democratic demand. However, Republicans have guaranteed a vote in December on a Democratic-chosen bill to extend these subsidies, which are used by over 20 million Americans to reduce health insurance costs.
Background
The U.S. government entered a shutdown on October 1, 2025, becoming the longest in U.S. history due to a failure in Congress to agree on government spending bills. This led to disruptions in critical federal services and hundreds of thousands of federal employees being furloughed or working without pay. Continuing Resolutions (CRs) have historically been used to avoid shutdowns but are controversial for sidestepping long-term government funding decisions. During President Donald J. Trump's administration, federal funding and budget impasses have been a recurring point of political contention. A key Democratic demand during this shutdown was the extension of enhanced Affordable Care Act (ACA) tax credits, which were set to expire at the end of December.
In-Depth AI Insights
What does the resolution of this "longest-ever" shutdown reveal about the Trump administration's influence and congressional dynamics in 2025? - Despite a record-breaking shutdown, the eventual compromise suggests that even after President Trump's re-election, his political leverage within Congress remains constrained. Bipartisan agreement was necessary to end the impasse, highlighting the persistent checks and balances in the U.S. political system rather than absolute dominance by one party. - The Democrats securing a guaranteed December vote on ACA tax credit extensions indicates they still hold significant negotiating power on key social issues, even if an immediate extension wasn't achieved. This could signal continued fierce legislative battles in social welfare and healthcare, which will be a focus for markets. Beyond the immediate relief, what are the long-term fiscal and market implications of this pattern of government funding via crisis, even under a re-elected Trump? - While the agreement aims to improve fiscal discipline through a bipartisan budget process and limiting continuing resolutions, the path to this deal via a prolonged shutdown may erode investor confidence in U.S. fiscal stability and predictability. - This repeated