Policy Backgrounders

Deal to End Government Shutdown Emerges in the Senate

November 11, 2025

On Sunday, a group of Democratic Senators reached a deal with Republicans to move towards ending the government shutdown. The legislative package must still pass the House and receive the President’s signature before the government can reopen.

• Eight Democrats in the Senate joined with Republicans to advance a legislative vehicle to end the government shutdown. The Senate formally adopted the deal Monday evening.
• The deal includes a minibus of three appropriations bills to fund Military Construction-Veterans Affairs, Agriculture, and the Legislative Branch through September 30, 2026; a continuing resolution (CR) through January 30, 2026, for the rest of the Federal government; restrictions on reductions in force; and a promise for a Senate vote on extending Affordable Care Act (ACA) enhanced premium tax credits.
• The House must return from recess and House Republican leadership must secure enough votes supporting the package before it can head to the President’s desk for his signature to end the shutdown.
• Business leaders can begin preparations for a resumption of government operations but should expect that some operations could take some time to return to normal. There is also the possibility of a partial shutdown in January if Congress cannot pass the remaining appropriations bills.

Potential Deal to End the Shutdown

At the start of November, the negative effects of the Federal government shutdown—now the longest in US history—reached a tipping point. The Supplemental Nutrition Assistance Program (SNAP) that supports 42 million Americans ran out of funding to pay food benefits on November 1, leading to extensive litigation between the Administration and the courts regarding using contingency funds to partially pay November benefits. The Low-Income Home Energy Assistance Program (LIHEAP) has also faced delayed Federal funding, threatening heating and energy assistance for six million households as Winter approaches. Last week, the Federal Aviation Administration announced a 10% cut in flights across 40 major airports from staffing shortages associated with the shutdown. Finally, individuals who purchase their health insurance through the ACA marketplace are confronting higher premiums as they select their health plans during open enrollment.

On Sunday, eight Senate Democrats joined all but one Republican Senator to advance a legislative measure by a vote of 60-40 to finally end the government shutdown. The coalition held, and the Senate formally adopted the deal Monday evening; the sixty votes were the exact number required to block any filibuster in the Senate. The deal includes a three-bill minibus combining the appropriations bills for Military Construction-Veterans Affairs, Agriculture, and Legislative Branch that previously passed the Senate, funding these programs and Congress through the end of Fiscal Year (FY) 2026. For the rest of the Federal government, the legislative package contains a CR providing funding at existing levels through January 30, 2026. The bill also includes language reversing the reductions in force of Federal workers during the shutdown and preventing future layoffs through January 30. Additionally, Senate Majority Leader John Thune (R-SD) has promised a Senate vote before the end of 2025 on extending the expiring ACA enhanced premium tax credits to address this key Democratic demand.

The eight Senators who supported the measure included John Fetterman (D-PA), Angus King (I-ME), Catherine Cortez Masto (D-NV), Jacky Rosen (D-NV), Dick Durbin (D-IL), Jeanne Shaheen (D-NH), Maggie Hassan (D-NH), and Tim Kaine (D-VA). These Senators were concerned about the impact of the shutdown on Federal workers and other Americans. They also believed the shutdown gave too much discretion to the Administration on operational and personnel decisions and that Republicans would not agree to an extension of the ACA enhanced tax credits while the government was closed.

None of these Senators is up for reelection in 2026, and each may feel less concerned about negative reaction; indeed, the reaction from several other Democrats was not positive. Progressives in Congress such as criticized the deal, training their ire on Senate Minority Leader Chuck Schumer (D-NY) despite his “No” vote on the measure. California Governor Gavin Newsom also called the deal “pathetic.” These Democrats believe the strong performance by their party during last week’s elections showed voters supported their shutdown strategy. They also do not trust Majority Leader Thune’s promise concerning a vote on ACA subsidies, noting Speaker Mike Johnson (R-LA) has not committed to a similar vote in the House.

Next Steps in the House of Representatives

The bill now heads to the House, which has not been in session for nearly two months. Speaker Johnson will finally swear in Representative-elect Adelita Grijalva (D-AZ), giving Republicans a 219-214 advantage. Thus, House Republican leadership will only have two votes to spare as it rallies support for the legislative package materializing in the Senate. The President signaled his support for the Senate deal on Monday, giving Speaker Johnson more leverage to convince Republicans to vote in favor. Moderate House Democrats could also lend some support to the measure.

While the deal in the Senate likely ends the government shutdown for the next several months, the underlying dynamics that precipitated the shutdown remain. The primary issue of extending the ACA enhanced premium tax credits will only grow in prominence as Americans purchasing health insurance in the ACA marketplace complete open enrollment before 2026. Despite several bipartisan proposals on an extension of the subsidies, Republican leadership in Congress has not endorsed a path forward and the caucus remains divided. Democrats could force a partial shutdown at the end of January if the vote on this issue does not occur.

Both parties must also agree on the nine appropriations bills that are included in the CR, creating a host of pitfalls to finally complete the appropriations process for FY2026. Democrats will also likely want assurances that the appropriations enacted for FY 2026 by a bipartisan supermajority are not subject to rescission by Republicans acting alone. Even if the agreement is enacted and agreement reached on ACA subsidies, the threat remains of a partial shutdown if the parties cannot reach agreement on the rest of the FY 2026 budget by January 30. Business leaders can begin preparations for a resumption of government operations but should expect that operations, including possibly air travel, could take some time to return to normal.