A bipartisan agreement between Senate Republicans and Democrats aims to reopen the government, restoring federal payrolls and other funding aspects. Senators are also set to vote on extending health care tax credits.
The Senate passed the funding bill with a 60-40 vote on Monday, securing funding for military construction, the Department of Veterans Affairs, the Department of Agriculture, and legislative bodies until September 30 of the next year, while other agencies will receive support through January 30.
The bill received approval after eight Democrats joined Republicans in the vote. The House plans to reconvene on Wednesday to discuss the bill.
During the shutdown, Democrats contended that the Affordable Care Act (ACA) tax credits, which are due to expire at year’s end, should be extended. Although the current spending bill does not address these credits, Senate Republicans have agreed to schedule a vote on their extension.
This agreement permits a vote during the second week of December. If the tax credits are not extended, insurance costs could rise significantly; for instance, individuals aged 65 and older making over $60,000 a year could see their monthly premiums increase by as much as $920 without the ACA subsidy.
Many Republicans oppose Obamacare, making it uncertain whether the bill will succeed in the Senate.
This ongoing solution offers funding until January 30, giving lawmakers a chance to develop a long-term spending plan.
The Senate agreement encompasses three years of funding measures, referred to as “minibuses.” One of these funding bills ensures full support for the Supplemental Nutrition Assistance Program (SNAP), while another focuses on the Department of Military Construction and Veterans Affairs. Additionally, there’s funding specifically allocated for salaries and benefits linked to the Legislature.
Once the shutdown is resolved, furloughed federal employees will return to their positions, with backpay issued to both those who were furloughed and those who remained on duty during the shutdown.
The agreement also reverses layoffs enacted by the Trump administration during the shutdown. It states, “No reduction in workforce proposed or executed by any executive agency from October 1, 2025, onward shall be valid.”
The resolution bars the use of federal funds to reduce employee numbers across any federal department or agency until January 30.
A federal judge had previously blocked efforts by the Trump administration to terminate federal employees during the early days of the government shutdown. As per the resolution, those fired will be reinstated to their positions as of September 30, 2025, without disruption.
This deal is anticipated to put an end to a historically long 42-day shutdown. Although President Trump has expressed intent to uphold the agreement once it reaches him, House Minority Leader Hakeem Jeffries has voiced his disapproval of the resolution.
“I cannot support any spending bill from Senate Republicans that fails to extend the Affordable Care Act tax credits,” Jeffries commented in a post on social media. “We will stand against the Republican bill in the House, which would compel Mike Johnson to end his extended vacation funded by Republican taxpayers.”
