The Government Shutdown Is Over: What Now?

Late on November 12, 2025, the longest government shutdown in U.S. history ended after 43 days. Although there was a sense of relief for many Americans, the resolution was limited and temporary, with the potential for another battle at the end of this month. 

Reopening the Government

The legislation that ended the shutdown was a package of bills that included provisions directly related to the shutdown, as well as some unrelated provisions that were added to address other issues and/or secure key votes in the Senate. Here are the provisions directly related to the shutdown.

• Funding was extended at current levels for most of the federal government until Friday, January 30. However, funding for the Department of Agriculture (USDA), military construction, and the legislative branch was extended through September 30. This ensures that the Supplemental Nutrition Assistance Program (SNAP), which is administered by the USDA, will remain funded in the event of another shutdown this fiscal year.
• Additionally, the legislation reversed all federal layoffs initiated during the shutdown, guaranteed that there would be no more mass firings through January 30, and clarified that all federal employees would receive back pay (regardless of whether they were furloughed or worked without pay during the shutdown).

The legislation did not address the extension of expanded subsidies for health care coverage under the Affordable Care Act, which was the primary focus of the shutdown. Although there remained bipartisan interest in extending the subsidies in some form, there is no guarantee that the Senate will vote to extend them in a way that is satisfactory to both parties. Unless this issue is resolved before the end of this month, the government could shut down again.

Add-on provisions

Provisions added to the legislation and not directly related to the shutdown include:

1) Lifting a spending restriction on the District of Columbia;

2) Providing additional security funding for legislators, Supreme Court justices, and executive-branch officials;

3) Changing the federal definition of hemp to make it illegal to sell mild hemp-based products such as gummies, drinks, vapes, and edibles; and

4) Providing $400 million for the E-7 Wedgetail radar jet, which connects other aircraft with military ground assets.

Yes another provision allows senators — but not members of the House — to sue the federal government for up to $500,000 if their personal data is collected without their knowledge. Retroactive to 2022, this relates to the Justice Department’s collection of phone records from eight senators during the investigation into efforts to overturn the 2020 election. Last November, the House voted unanimously to repeal this provision.

Costs and Other Impacts

The Council of Economic Advisers (who provide the president with objective economic analysis) estimated that 60,000 non-federal workers lost their jobs due to the effects of the shutdown. Unlike federal employees, these workers are not guaranteed reinstatement or back pay.

The Council also estimated that the shutdown cost the U.S. economy about $15 billion per week, or about $92 billion in total, reducing gross domestic product (GDP) growth by 1.5 percentage points in Q4 of 2025. Based on past shutdowns, it’s likely that much of this spending will be recovered, which may lead to higher-than-expected GDP growth in Q1 of 2026. However, an estimated $11 billion in economic activity was permanently lost. Consumer confidence declined during the shutdown, and it was unknown how that would translate to spending during the holiday season and early 2026.

Even if federal and consumer dollars flow into the economy, lost productivity cannot be recovered, and it may take months or years for federal employees to catch up on their work. Missed flights impacted lives, as did delays in federal salaries and SNAP payments, which help 42 million Americans with basic food costs. Unfortunately, only some states maintained full or partial payments. Additionally, many important economic reports were either not released or released late due to the shutdown, making it difficult for economists, investors, consumers, and even the Federal Reserve to make informed decisions.

Whether the shutdown was worth the consequences depends on one’s point of view, as well as the outcome of the struggle over expanded subsidies for health insurance. Millions of consumers have already seen their health insurance premiums skyrocket without the extended subsidies, and it’s estimated that nearly 4 million will lose coverage each of the next eight years if they are not extended. Whether this and other political conflicts can be resolved without another shutdown remains to be seen.

To discuss the potential impact of these uncertain economic times on your investments or retirement plans, call Elite Advisory Group today at 888-964-1286.