government shutdown

US Government Shutdown Nears End as Senate Strikes Historic Deal After 40 Days

By Australian Broadcasting Corporation & The Hill News Wires
Updated November 10, 2025 | 5 min read

After 40 days of political stalemate that froze federal services and rattled global markets, the United States Senate has finally reached a bipartisan agreement to end the longest government shutdown in American history.

In a rare Sunday session filled with tense negotiations, a coalition of Senate Democrats joined forces with Republican lawmakers to break the deadlock. The move comes as relief to hundreds of thousands of federal workers and a global economy watching closely for signs of stability.

According to The Hill, the text of the Senate’s plan has been released, outlining the framework that will reopen the government. Meanwhile, the Australian Broadcasting Corporation (ABC) confirms that the Senate is moving swiftly toward a vote on the bill designed to terminate the federal shutdown.

But while the immediate crisis appears to be abating, the ripple effects of the 40-day freeze—from stalled regulatory oversight to economic uncertainty—will be felt for months to come.

The Breakthrough: How the Deal Came Together

For weeks, Washington was paralyzed. The government shutdown, which began on October 1, entered its 40th day—surpassing all previous records for duration. Tensions were high, with essential services hanging in the balance and federal workers facing mounting financial pressure.

However, the tide turned during a rare Saturday and Sunday session. According to supplementary reports from major news outlets, a group of centrist Democrats and pragmatic Republicans finally managed to bridge the divide.

"Lawmakers reached a deal Sunday to end the longest-ever government shutdown," sources familiar with the matter told reporters. The agreement was struck between a bloc of Senate Democrats, congressional Republicans, and the White House.

While the Senate had already begun voting on procedural measures to advance a House-passed continuing resolution, Sunday’s development represents the "first real step toward ending the ongoing government shutdown," according to Republican leadership.

Senate leaders are now confident they have secured the necessary 60 votes to clear the legislative hurdle, effectively unlocking the path to reopening the federal government.

A Timeline of the Stalemate

To understand the magnitude of this breakthrough, it is essential to look back at the timeline that brought the US to this precipice.

• Day 1 (October 1): The federal government enters a shutdown following a failure to agree on a budget, affecting non-essential services.
• Day 20: Negotiations stall. The White House and Congress trade blame, leaving federal workers in limbo.
• Day 35: The shutdown becomes the longest in US history. Global markets react with volatility.
• Day 39 (Saturday): A rare weekend session begins. Senators hold marathon talks to find a solution.
• Day 40 (Sunday): A deal is struck. The Senate prepares to vote on a bill to end the shutdown.

Throughout this period, the Trump Administration played a significant role in shaping the narrative. Notably, President Trump proposed a controversial plan to divert ACA (Affordable Care Act) subsidies directly into Health Savings Accounts (HSAs) for Americans—a move intended to offer a compromise but one that added complexity to the negotiations.

The Broader Context: Why This Matters Globally

For Australian observers, a US government shutdown is more than just an American domestic issue—it is a global economic event. The United States remains the world's largest economy, and a prolonged freeze creates significant drag on international trade, currency stability, and supply chains.

The Regulatory Vacuum

One of the often-overlooked consequences of a shutdown is the suspension of regulatory oversight. Interestingly, while the US government was frozen, Australian regulators remained active.

In a stark contrast to the paralysis in Washington, the Australian Financial Review (AFR) reported on November 10 that the Australian Competition and Consumer Commission (ACCC) put retailers on notice ahead of the Black Friday sales sweep. This highlights how regulatory bodies in Australia continue to protect consumers even as their US counterparts were furloughed.

Historical Precedents

The current shutdown stands alone in its duration, but it follows a pattern of political brinkmanship seen in previous decades. However, the 40-day impasse has raised questions about the sustainability of the US budget process. The reliance on "continuing resolutions"—short-term funding patches—has become a standard, yet destabilizing, tool in American politics.

Immediate Effects of the Shutdown Ending

As the Senate moves to pass the funding deal, the immediate impact will be felt in three key areas:

1. Federal Workers

Hundreds of thousands of federal employees, who have been working without pay or furloughed entirely, will return to work. The back pay restoration is expected to be immediate, providing a much-needed boost to household incomes and consumer spending.

2. Government Services

From national parks to visa processing and federal housing loans, services that were suspended will ramp back up. The "backlog" effect, however, means that delays may persist for several weeks as agencies catch up on the accumulated work.

3. Market Confidence

The news of a deal is already stabilizing financial markets. Investors had priced in the risk of a prolonged shutdown, and the resolution removes a major cloud of uncertainty hanging over the US economy.

Future Outlook: Risks and Strategic Implications

While the immediate threat is resolved, the structural issues that led to the shutdown remain.

The "Continuing Resolution" Trap: The Senate is voting on a continuing resolution to fund the government temporarily. This does not solve the underlying budget disagreements; it merely pauses them. This means the US could face another standoff in a matter of months unless a long-term budget is negotiated.

Political Fallout: The deal required Democrats to cross party lines to support a Republican-led initiative. This bipartisanship, while necessary to end the crisis, may have political consequences in the upcoming election cycles.

Global Economic Shift: The 40-day freeze has likely caused some foreign investors to reconsider the stability of US debt and governance. Repairing that confidence will be a priority for the administration in the coming months.

Conclusion: A Fragile Peace

The US Senate’s ability to come together on a Sunday to avert disaster is a testament to the pressure of public opinion and the economic reality of a prolonged freeze. As the vote to end the government shutdown proceeds, the world watches with relief.

However, the lesson for international observers—including the Australian business community—is that political volatility in the US remains a high-impact risk. While the government is reopening, the scars of the 40-day shutdown will take time to heal.

For now, the lights are back on in Washington.

Sources:

• The Hill: Full text of Senate’s plan to end the government shutdown
• Australian Broadcasting Corporation (ABC): US Senate to vote on bill that would end federal government shutdown
• Australian Financial Review (AFR): ACCC puts retailers on notice ahead of Black Friday sweep
• Supplementary reports from CNN, CNBC, and major news wires regarding Senate negotiations and procedural votes.