The Senate on Monday passed a bill to fund key federal operations and end the ongoing government shutdown, marking a step toward restoring federal paychecks and other services. The measure, approved 60-40, would fund military construction, the Department of Veterans Affairs, the Department of Agriculture, and the legislative branch through Sept. 30, 2026, while providing a continuing resolution for the rest of the government through Jan. 30, 2026.
The vote saw eight Senate Democrats join Republican supporters, and the House of Representatives is scheduled to vote on the bill on Wednesday.
Key Provisions of the Bill
The legislation, sometimes described as a “minibus,” combines three yearlong funding bills. One allocates funds for the Department of Agriculture, including full funding for the Supplemental Nutrition Assistance Program (SNAP). Another addresses military construction and Veterans Affairs, while a third covers salaries and allowances for the legislative branch.
The continuing resolution would allow furloughed federal employees to return to work immediately and receive back pay. It also reverses layoffs enacted by the Trump administration during the shutdown, requiring any federal worker affected to be reinstated to their position as of September 30, 2025. The resolution further prohibits federal agencies from initiating new layoffs until Jan. 30, 2026.
Health Care Tax Credits and Future Votes
While the appropriations bill does not extend Affordable Care Act (ACA) tax credits set to expire at the end of the year, Senate Republicans have agreed to hold a separate vote on the issue during the second week of December. Without the subsidies, some analysts have warned that insurance costs could rise significantly, particularly for individuals aged 65 and older with annual incomes of $60,000 or more, who could see monthly premiums increase by roughly $920.
Republicans, who generally oppose expanding ACA programs, are expected to block the extension in the Senate, but Democrats have made the issue a central point of negotiation.
End of Shutdown and Next Steps
If passed by the House and signed into law, the deal would bring an end to the 42-day government shutdown, the longest in U.S. history. President Trump has indicated he would “abide by the deal” once it reaches his desk.
However, the bill faces opposition from House Democrats. Minority Leader Hakeem Jeffries (D-N.Y.) stated that his caucus would not support legislation that fails to extend ACA tax credits, calling on House Republicans to end what he described as a “seven-week taxpayer-funded vacation.”
