Donald Trump officially signs bill to end shutdown…government restored after 43 days

President Donald Trump has officially signed the bill to end the federal government shutdown (work stoppage).

On the 13th (local time), according to the Kobayashi Letter, President Trump signed the temporary funding (stopgap funding) bill that had passed both the Senate and the House. This action brings an end to the longest government shutdown in history, which lasted 43 days.

As a result, the federal government's administrative functions will be immediately restored to normal, and agencies' budget execution and public services will resume. The temporary funding bill temporarily restores funds for the federal government and agencies at existing levels until January 30 of next year. Congress plans to complete negotiations and votes on a budget applicable to the current fiscal year (October 1, 2025–September 30, 2026) by then.

However, ahead of the Senate vote, Republicans and Democrats agreed across the aisle to handle budgets for some departments on a one-year basis. The temporary funding bill included budgets for the Department of Agriculture (USDA), the Food and Drug Administration (FDA), and the Department of Veterans Affairs (VA), along with military construction projects and congressional operations funding.

Also, the large-scale civil servant layoff plan that President Trump had pursued under the justification of the shutdown was withdrawn, and the agreement included a provision guaranteeing a Senate vote on the Democrats' requested extension of Obamacare (ACA) subsidies.

The low-income food assistance program (SNAP) benefits, which had been suspended since the 1st due to depleted funds during the prolonged shutdown, will also resume and will be paid without interruption through the end of this fiscal year. In addition, back pay owed to federal employees will be paid in a lump sum, and state governments that used their own budgets to fill the gap in federal aid during the shutdown are expected to receive financial compensation.

Meanwhile, markets expect that the end of the prolonged shutdown will reduce policy uncertainty and that the release of major economic indicators will resume in sequence.