The record-breaking US government shutdown is nearing its conclusion as a group of moderate Senate Democrats have agreed to support a deal aimed at reopening the government. The agreement proposes to fund several departments and agencies for the next year, according to individuals familiar with the negotiations. This development has sparked positive reactions in financial markets. US stock futures saw a jump in early Asian trading in response to the news.
Under the terms of the proposed agreement, Congress would approve full-year funding for the departments of Agriculture, Veterans Affairs, and Congress itself. Other agencies would receive funding through January 30. The legislation also addresses the immediate needs of government employees and state entities affected by the shutdown. It ensures that furloughed government workers receive their pay, federal payments to states and localities, which were withheld, would resume, and agency employees who were laid off during the shutdown would be recalled.
The Senate is scheduled to hold a procedural test vote on Sunday. Successful passage of this vote would require the consent of all members to expedite the process of ending the shutdown. It is important to note that any single senator can delay the process and force additional votes. Following Senate approval, the bill would need to pass in the House. House Speaker Mike Johnson has stated that lawmakers will be given two days’ notice to return for the vote.
Once passed by both chambers, the bill would allow the government to reopen. The resolution of this shutdown would bring relief to numerous sectors affected by the disruption, from federal employees to state and local governments, and it could stabilise market confidence.
