Back Pay Guarantees, Some Layoffs Reversed as Bill to Reopen Government Heads to House

The longest government shutdown in U.S. government history is likely to be over in just days, meaning federal workers will be fully back on the job, and are set to receive paychecks again. 

The legislation to reopen the govenrment includes a provision ensuring backpay for federal workers who were placed on furlough. It also reverses the 4,000 layoffs that were announced during the shutdown and would prevent future layoffs through January 30, 2026. 

The breakthrough came after eight Sente Democrats supported a bipartisan deal to fund the federal government through January 20. The bill passed the Senate 60-40. Seven Democrats and Independent Angus (I-ME) joined all Republicans (except for Kentucky’s Rand Paul), in supporting the legislation. 

The legislation also includes aid for the Supplemental Nutrition Assistance Program (SNAP) but does not include an extension of subsidies for the Affordable Care Act (ACA), one of the key Democratic sticking points. 

It also includes full year funding for the Agriculture Department (USDA), Department of Veterans (VA), and the legislative branch. The January date gives Congress another two months to work out funding for the rest of the Appropriations bills. 

As part of the deal, Senate Majority Leader John Thune (R-SD) promised a vote in December on extending the ACA subsidies. But it’s unclear whether it could get enough support from Republicans. 

The bill next heads to the House, which House Speaker Mike Johnson (R-LA) is calling back into session after a seven-week recess. 

However, House Minority Leader Hakeem Jeffries (D-NY) said he would not support legislation, putting the ball squarely in the speaker’s court to get the sometimes-fractious Republican conference to support the bill. 

“We will not support spending legislation advanced by Senate Republicans that fails to extend Affordable Care Act tax credits,” said Rep. Jeffries. “We will fight the GOP bill in the House of Representatives.”

Nevertheless, federal employee groups praised the inclusion of back pay in the legislation. 

“These protections provide for fundamental fairness,” said Marcus Hill, president of the Senior Executives Association (SEA). “They also safeguard continuity of government operations, preserve critical talent, and stabilize and extend funding for missions and services that millions of Americans rely on daily.”

Shutdown Impacts Reverberate

Even when the government reopens, experts warn that it will take time to get back to normal operations.

On air traffic for instance, delays are continuing due to a shortage of air traffic controllers. Cuts to flights at 40 U.S. airports are rising to six percent on November 11, and airline experts say the window for sufficient recovery before Thanksgiving is narrow. 

“Airlines’ reduced flight schedules cannot immediately bounce back to full capacity right after the government reopens. It will take time, and there will be residual effects for days,” said a statement from Airlines for America, a trade organization that represents major airlines.

And there’s the economic damage due to missed paychecks, missed SNAP payments, and other disruptions.

“Short-lived shutdowns are usually invisible in the data, but this one will leave a lasting mark,” said Gregory Daco, chief economist at accounting giant EY, “both because of its record length and the growing disruptions to welfare programs and travel.”