Last-Minute Funding Deal Reached in Congress Clears Path for Federal Workers' Paychecks and Holiday Operations

November 12, 2025

WASHINGTON — In a dramatic eleventh-hour compromise, congressional leaders announced Wednesday evening that a stopgap funding bill has passed both chambers of Congress, effectively ending the 18-day U.S. government shutdown just before midnight. The agreement, forged after marathon negotiations amid mounting public outrage, will restore full operations to federal agencies starting tomorrow, injecting relief for 2 million furloughed workers and preventing disruptions to critical services over the Thanksgiving holiday.

House Speaker Mike Johnson (R-La.) hailed the deal as a "victory for common sense and the American people," crediting "tireless bipartisan talks" that bridged deep divides over spending cuts and border security. The bill, which extends government funding through March 2026 at current levels while allocating $15 billion for disaster relief and $5 billion for enhanced border enforcement, cleared the House by a 225-210 vote earlier today and the Senate on a 78-22 tally just after 8 p.m. ET. President Kamala Harris is expected to sign it into law within the hour, averting what economists warned could have ballooned into a $10 billion weekly hit to the economy.

The shutdown, the third in five years and the longest since 2018-2019, stemmed from Republican demands for fiscal restraint clashing with Democratic priorities on social programs and Ukraine aid. It idled national parks, delayed IRS tax refunds, and left Coast Guard families without paychecks, drawing sharp rebukes from across the aisle. "This wasn't about policy; it was about pain," said Senate Majority Leader Chuck Schumer (D-N.Y.) in a floor speech. "Tonight, we choose progress over politics."

Federal employees, many of whom have been working without pay or on mandatory unpaid leave, expressed cautious optimism as news broke. In a viral video circulating on social media, Smithsonian curator Elena Vasquez choked back tears outside the shuttered National Mall: "We've preserved history for pennies while our bills pile up. This ends the nightmare — for now." Back pay is mandated under the deal, with retroactive compensation expected within two weeks, though contractors may wait longer.

The resolution caps a week of high-stakes drama. On Monday, Treasury Secretary Janet Yellen issued a stark warning that the U.S. could default on debt obligations if the impasse dragged into December, rattling global markets and prompting a 2% dip in the Dow Jones. Bipartisan talks, mediated by a group of moderate senators dubbed the "Firewall Caucus," gained traction Tuesday after a poll showed 65% of voters blaming both parties equally for the stalemate.

Looking ahead, the deal includes a commission to study long-term deficit reduction, but fault lines remain. Progressive Democrats decried the lack of new investments in clean energy, while hardline conservatives like Rep. Marjorie Taylor Greene (R-Ga.) voted against the measure, calling it a "surrender to the swamp." Still, the swift passage signals a fragile détente as lawmakers eye midterm battles in 2026.

As Capitol Hill lights dimmed on the shutdown's final hours, the mood shifted from exhaustion to tentative relief. Airports, poised for holiday travel surges, will resume full TSA staffing overnight, and veterans' benefits processing — halted for non-essential staff — will ramp up immediately. For the millions affected, the end of this chapter can't come soon enough. "We've learned our lesson," Johnson told reporters. "No more shutdowns on my watch." With the ink still drying on the bill, America gears up for a debt-free Thanksgiving — a small mercy in an era of divided governance.