Government Shutdown Resolution
The United States Senate has moved closer to reopening the federal government after a 40-day shutdown. Lawmakers voted 60–40 to advance a bipartisan funding package that will restart core federal operations and extend funding through January 30, 2026.
The agreement followed extensive weekend negotiations between Democrats and the Trump administration. Democrats agreed to support a modified House stopgap bill after the administration consented to rehire furloughed employees and allow a December vote on extending Obamacare tax credits.
Funding Deal Restores Key Federal Agencies
The bill will finance the Department of Agriculture, the Food and Drug Administration, the Department of Veterans Affairs, military construction, and congressional operations for the rest of the fiscal year. Lawmakers explained that the package was structured to prevent the recurring funding disruptions that have affected services and halted pay for thousands of workers.
During the shutdown, about 750,000 federal employees were without pay, leading to widespread service interruptions. Air travel delays reportedly rose nearly 10% as air traffic controllers went unpaid, highlighting the broad economic impact of the funding lapse.
The bipartisan measure aims to bring consistency to government functions after weeks of halted operations. Lawmakers from both sides emphasized the need to stabilize key agencies and resume regular payroll processing for affected workers.
Shutdown Pressure Weighed on Risk Markets
Financial markets faced growing pressure during the extended shutdown as liquidity tightened and spending froze. Analysts said reduced government activity weighed on both equity and digital asset markets.
Bitcoin dropped below the $100,000 psychological mark to $99,000 during the shutdown, while major altcoins also fell. Analysts attributed the decline to liquidity shortages and cautious investor sentiment. Reports of a $1.1 billion short bet on AI stocks by Michael Burry added to the market’s risk aversion.
Crypto Market Rebounds After Senate Progress
Market conditions began to improve after Senate Majority Leader John Thune suggested that an agreement was imminent. His comments encouraged investor optimism, sparking a rebound in risk assets as expectations of renewed liquidity strengthened.
Bitcoin gained 4% to reach $106,155.82, while Ethereum advanced 5.68% to trade at $3,603.28. The rebound signaled growing confidence that government operations would soon resume, easing financial strain across digital and traditional markets.