Measure funds the government through January, ensures back pay for federal workers, and sets up a December vote on Obamacare subsidies.
WASHINGTON, Nov 10 (Market Insider) — After 40 days of political gridlock, the U.S. government shutdown appears to be nearing an end as the Senate late Sunday night narrowly passed the first stage of a bipartisan deal to reopen federal agencies.
The procedural vote — which allows final approval votes to begin Monday — passed with exactly 60 “yes” votes, the minimum required. Eight Democrats broke ranks to back the deal, joining Republicans after a tense two-hour delay as Sen. John Cornyn (R-Texas) flew in from Texas to cast the decisive vote. Applause broke out on the Senate floor when Cornyn arrived just before 10:50 p.m.
“After 40 long days, I’m hopeful we can bring the shutdown to an end,” said Senate Majority Leader John Thune (R-S.D.), who led negotiations with the White House and centrist Democrats.
What’s in the Deal
The agreement — reached after a weekend of nonstop talks — would fund the government through January 2026 and guarantee back pay for federal employees, including those furloughed during the shutdown. It also reverses permanent layoffs enacted during the closure and bars additional staff cuts until the end of fiscal 2026.
Key provisions include:
- Temporary funding for all federal agencies and the SNAP food assistance program through September 2026, protecting benefits for 42 million Americans.
- A guaranteed December vote on legislation to extend enhanced Affordable Care Act (ACA) premium tax credits, a core Democratic demand.
- New bipartisan budget procedures to limit the White House’s use of stopgap “continuing resolutions” to fund operations.
The deal now heads to the House of Representatives and then to President Donald Trump, who must sign it to formally end the shutdown.
Winners, Losers, and Political Fallout
While Democrats failed to secure an immediate extension of ACA subsidies — which expire in December — the compromise ensures a future vote on the issue, potentially affecting health insurance costs for over 20 million Americans.
“This was the only deal on the table,” said Sen. Jeanne Shaheen (D-N.H.), one of the Democratic negotiators. “It was our best chance to reopen the government and start working toward extending the ACA tax credits.”
Her colleague Sen. Angus King (I-Maine) said he agreed to drop the subsidy demand because “it wasn’t working” and the prolonged shutdown was inflicting mounting harm on the country.
Not all Democrats agreed. Senate Minority Leader Chuck Schumer (D-N.Y.) blasted the compromise, calling it “a failure to confront a health care crisis” and refused to support it. Sen. Bernie Sanders (I-Vt.) labeled the Republicans’ promise of a December vote “a totally meaningless gesture.”
Still, the deal had just enough bipartisan support to clear the first hurdle. Republican Sens. Rick Scott, Ron Johnson, and Mike Lee ultimately joined the “yes” camp after discussions with Thune. Only Sen. Rand Paul (R-Ky.) voted no among Republicans.
Economic and Social Stakes
The shutdown, which began Oct. 1, had already disrupted everything from federal paychecks to food stamp programs. The Trump administration announced last week it would suspend full SNAP benefits for November before the Supreme Court temporarily blocked that decision on Friday.
If enacted, the Senate deal would ensure retroactive pay for all 2.2 million federal employees and contractors — a critical step to stabilize households hit hardest by the funding freeze.
“Lawmakers know their constituents expect them to vote for it,” said Sen. Tim Kaine (D-Va.), who supported the measure. “If they don’t, they could be replaced by someone who will.”
The Outlook
The measure’s passage signals that Congress is moving toward ending one of the longest shutdowns in U.S. history, though uncertainty remains as the House prepares its vote.
Political analysts say the episode has revealed deep divisions over health care, spending, and executive power — but also a rare willingness among moderates to compromise in the face of economic damage.
If the deal clears the House this week, the federal government could reopen before Thanksgiving, bringing relief to millions of Americans and markets weary of Washington’s fiscal brinkmanship.
