U.S. Senate Moves to End Record Government Shutdown

SECAUCUS, NJ (DTN) – The U.S. Senate was set to reconvene on Monday (11/10) to proceed with a debate and vote on a full funding package to reopen the federal government, after the passing of a preliminary measure to end the country’s longest government shutdown.

Eight Democratic senators crossed over to support a deal negotiated by Senate Republicans on Sunday (11/9) night to pass by a 60-40 vote the measure to move toward the formal debate to reopen the government shut down since October 1.

The shutdown was triggered by a deadlock over extending expiring health insurance subsidies under the Affordable Care Act that Democrats had demanded.

The debate on Monday will be on a spending package to fund the government through January and incorporate three separate appropriations bills to cover the Department of Agriculture, military construction and legislative agencies for most of the following year.

A key provision mandates retroactive pay for furloughed federal workers and reverses layoffs made during the shutdown.

Any legislation agreed must pass the full Senate and be approved by the House of Representatives, before being signed by President Donald Trump.

The prospect of ending the prolonged shutdown had immediate ripple effects across financial markets. Oil prices edged higher Monday on news of the Sunday night vote to reopen the government. The shutdown’s economic toll had been mounting, with the University of Michigan’s Index of Consumer Sentiment falling to a three-year low in November.

The aviation sector, hit particularly hard by the crisis, also weighed on the oil complex as the prospect of widespread flight cancellations mounted due to air traffic controllers retiring at record rates during the shutdown.

Close to 5,400 flights were cancelled over the last three days, with delays amounting to around 23,900 since Friday, raising concerns about jet fuel demand ahead of one of the busiest travel seasons of the year.

Amid the air traffic controller shortage, the Federal Aviation Administration mandated a 6% reduction in flights by Tuesday and 10% by Friday.