US shutdown nears end after 40 days: What the deal means for Trump, what it covers and what could still go wrong

According to Associated Press, the proposed deal does not guarantee the extension of ACA subsidies, a key Democratic demand since the shutdown began. These subsidies help millions of low-income Americans afford private health insurance under Obamacare.

Key features of the funding deal

The spending bill temporarily bans federal agencies from firing employees until January 30, 2026, which would obstruct President Donald Trump’s plan to significantly shrink the federal workforce. The agreement also mandates that all federal employees laid off during the shutdown will be rehired and paid back wages.

In addition, the package includes full-year appropriations for critical programmes such as veterans’ benefits, food aid, and legislative operations, reported Reuters.

The deal was negotiated by a small bipartisan group led by Senators Maggie Hassan and Jeanne Shaheen (both Democrats from New Hampshire) and Independent Senator Angus King of Maine. Senate Majority Leader John Thune, a Republican, played a key role in brokering the compromise.

“After 40 long days, I’m hopeful we can bring this shutdown to an end,” Thune said ahead of the vote.

President Donald Trump acknowledged the development but stopped short of endorsing it. “It looks like we’re getting close to the shutdown ending,” he told reporters at the White House.

Deep divisions remain

Despite the Senate’s progress, the deal has exposed sharp divisions within both parties, particularly among Democrats.

Senate Majority Leader Chuck Schumer voted against the bill, saying he could not “in good faith” support it since it failed to extend ACA subsidies. “We have sounded the alarm on healthcare, and we will not give up the fight,” Schumer said.

Progressive Democrats voiced similar frustration. Vermont Senator Bernie Sanders called the compromise a “horrific mistake,” while Representative Ro Khanna wrote on X that “Senator Schumer is no longer effective and should be replaced.”

Even some moderates expressed reluctance. Senator John Hickenlooper, Democrat of Colorado, admitted, “There’s no good choice, right? But we have to stand up to this kind of strongman dictatorial approach to governing.”

Economic and social impact

The shutdown, which began in late September, has wreaked havoc on multiple sectors. According to FlightAware data cited by AP, more than 2,000 flights were cancelled and 7,000 delayed on Sunday alone due to staffing shortages among air traffic controllers and TSA agents.

US Treasury Secretary Sean Duffy warned that if the shutdown continued, air travel before Thanksgiving would be “reduced to a trickle.”

The shutdown has also hit food aid, veterans’ services, and public parks, while leaving thousands of federal employees without pay.

What happens next

Although the Senate’s vote paves the way for reopening the government, the bill must still clear several hurdles. It will undergo further procedural votes, which could face delays from opponents. Once passed by the Senate, it will head to the House of Representatives, where deep partisan divides remain.

House Minority Leader Hakeem Jeffries vowed to fight the measure, saying Democrats “will not support spending legislation advanced by Senate Republicans that fails to extend the Affordable Care Act tax credits.”

Still, some centrist House Democrats signalled willingness to support the package to end the shutdown.

Political analysts note that while the measure may temporarily restore normalcy, it does not address the structural divisions that led to the crisis. The bill funds most government operations only until late January, potentially setting up another showdown early next year.

As BBC observed, the temporary deal “buys Washington a few months of peace” but leaves the fundamental questions unresolved about spending priorities, healthcare funding, and the limits of presidential power in budget decisions.