US Senate Passes 2025 Budget Deal, Ending Historic Shutdown

The U.S. Senate approved a compromise on Monday to end the longest government shutdown in history, ending weeks of stalemate that caused widespread disruption. The shutdown affected millions by cutting food benefits, leaving hundreds of thousands of federal workers unpaid, and causing air traffic delays. The Senate's 60-40 vote was supported mainly by Republicans and eight Democrats. These Democrats unsuccessfully attempted to link government funding to expiring health subsidies that benefit 24 million Americans, a move that the new deal does not guarantee will continue.

The agreement resumes funding for federal agencies that expired on October 1 and halts President Donald Trump's efforts to reduce federal workforce size, preventing layoffs until at least January 30. The deal now moves to the House of Representatives, controlled by Republicans, where Speaker Mike Johnson aims to pass it quickly and send it to Trump for signature. Trump has praised the deal, calling it "very good."

The deal extends funding through January 30, but leaves the government on a trajectory that could add approximately $1.8 trillion annually to the national debt, which currently stands at $38 trillion. The timing follows recent high-profile Democratic victories in New Jersey, Virginia, and New York City, but has angered many Democrats due to uncertainty over the renewal of health subsidies, which are linked to the expiration of certain programs.

Senator Dick Durbin expressed disappointment, noting that the shutdown was an opportunity for better policy that failed. A Reuters/Ipsos poll showed that half of Americans blame Republicans for the shutdown. Meanwhile, U.S. stock markets rose following news of the deal.

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Trump has taken unilateral actions to cut spending and reduce federal payrolls, actions that have raised constitutional questions about Congress's authority over fiscal matters. The deal does include funding for the SNAP food program through September 2024, to prevent disruptions during potential future shutdowns.

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