Government reopens after record 43-day shutdown, leaving economic damage, air travel chaos, and deep Democratic divisions. Image credit Financial Times
(The Post News) – After 43 turbulent days, the US government finally reopened Wednesday night. President Donald Trump signed a temporary funding bill into law. The move ended the longest shutdown in American history, but the fallout across the economy, aviation industry, and Democratic Party continues to unfold.
“With my signature, the federal government will now resume normal operations,” Trump said in the Oval Office. He blamed Democrats for the shutdown, calling their negotiation tactics “extortion.” Yet national polls show most Americans hold Republicans responsible for the crisis.
Federal Workers Return, But Economic Costs Mount
More than 800,000 federal workers missed paychecks during the shutdown. The new law guarantees back pay and reverses layoffs, but the financial recovery will take time. The Congressional Budget Office estimates the shutdown cost the U.S. economy about 1.5 percentage points of GDP growth in the current quarter.
“The economic damage is real,” said Claudia Sahm, an economist with New Century Advisors. “Federal data collection stopped for weeks, leaving the Federal Reserve without key information about jobs and inflation.”
The Fed’s December rate decision could be delayed, as the Bureau of Labour Statistics halted surveys during the shutdown. Incomplete data on jobs and prices could distort inflation readings through next year, economists warn.
Wall Street welcomed the government’s reopening, but market analysts said missing data may create short-term volatility. “It’s like flying with one eye closed,” said one UBS analyst.
The aviation industry took a big hit during the shutdown, too. With air traffic controllers and TSA officers out working without pay, the Federal Aviation Administration had to cut up to 6% of its flights at major airports. Those cuts resulted in more than 900 flight cancellations and over 2,000 delays nationwide on Wednesday, alone.
Transportation Secretary Sean Duffy said staffing levels were improving and predicted flight operations would normalize within a week. “Safety is our top priority,” Duffy said. “Now that controllers are being paid again, we expect gradual improvement.”
Delta CEO Ed Bastian estimated to CNBC that the shutdown cost his airline “tens of millions of dollars” in canceled flights. American Airlines similarly expressed frustration but welcomed the reopening as an end to unpredictability for travelers and a restoration of paychecks for safety professionals.
The airline industry is hoping to stabilize before the busy Thanksgiving season. “We’re ready to get America moving again,” said American Airlines COO David Seymour.
The House passed the reopening deal 222 to 209 after eight Senate Democrats and six House Democrats broke ranks to vote with Republicans. The compromise excluded Democrats’ main demand for extending Affordable Care Act subsidies that expire later this year.
Progressives called the decision a betrayal. “We cannot enable this kind of cruelty with our cowardice,” said Rep. Alexandria Ocasio-Cortez. “Millions of families faced hunger and job insecurity for what? A watered-down deal?”
Moderate Democrats defended their votes as necessary to protect federal workers. “Shutdowns never change the outcome, only the cost paid by the American people,” said Rep. Tom Suozzi.
House Democratic Leader Hakeem Jeffries promised to keep pushing for a subsidy extension. “Either Republicans act to protect Americans’ health care, or voters will replace them next year,” Jeffries said.
The fracture in the party has increased tensions as the 2026 midterm elections approach. Progressive groups have even called on Senate Minority Leader Chuck Schumer to step down for his failure to keep the caucus united.
Uncertain Future Ahead
The stopgap spending bill keeps the government open through January 30, setting up another possible shutdown at the beginning of 2026. Key agencies, including Agriculture, Veterans Affairs and the FDA, are financed through September.
Speaker Mike Johnson promised to repeal a contentious Senate provision permitting lawmakers to sue the government over seized phone records. “It was a bad look, and we’re going to fix it,” Johnson said.
For now, federal employees are back to work, airports are stabilizing, and food assistance programs are resuming. But the political wounds linger. As one air traffic controller at Reagan National said, “The government might be open again, but trust is still shut down.”
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