Tuesday, 02 January 2024 12:17 GMT

US Senate bipartisan deal to end federal government shutdown


(MENAFN) The US Senate has approved a bipartisan agreement aimed at ending the federal government shutdown, marking a key step after more than five weeks of political stalemate that furloughed hundreds of thousands of workers, disrupted essential public services, and unsettled the broader economy.

In a preliminary test vote late Sunday night—the first of several procedural steps—the Senate advanced the compromise bill with a 60-40 vote. Senate Majority Leader John Thune said it “remains to be seen” when a final vote to reopen the government will take place, though he expressed hope that passage could occur early this week.

The deal was reached after intense negotiations among a small group of Republican and Democratic lawmakers, who faced growing pressure from business leaders, governors, and federal employees affected by the shutdown. The legislation provides back pay for furloughed staff, guarantees continued funding for vital programs, and includes limited policy concessions designed to allow both parties to claim some success.

Warnings about the economic impact of the shutdown have become increasingly urgent. White House economic adviser Kevin Hassett noted earlier this week that the damage was “far worse” than previously estimated and could halve fourth-quarter GDP growth.

The political deadlock in Washington has also delayed more than $5 billion in arms shipments to European NATO members, including AMRAAM air-to-air missiles, HIMARS systems, and other weapons often later transferred to Ukraine.

Supporters of the Senate deal described it as an imperfect but necessary measure to restore government operations and prevent further economic and strategic harm.

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