On Wednesday, Nov. 12, President Donald Trump signed legislation ending the longest government shutdown in U.S. history. The legislation came hours after the House of Representatives voted to reinstate pay for federal workers and “revive a hobbled air-traffic control system,” according to Reuters. The Republican-controlled chamber passed the package by a vote of 222-209.
Although the shutdown halted grant-making and reimbursements, funding for major programs, such as those for public transit agencies under the Federal Highway Administration (FHWA), the Federal Transit Administration, and the Federal Motor Carrier Safety Administration, are largely unaffected on a day-to-day basis.
Sources like the Highway Trust Fund can help insulate agencies during a lapse, as reported by the American Road & Transportation Builders Association.
If future funds, like the shortfall in federal funding that helped support bus and metro systems during the pandemic, are impacted or “run out”, according to PBS correspondent John Yang, some agencies may face deficits, which can result in “reduced services and increased fares.”
Federal Services Face Slow Recovery After 43-Day Pause
However, after a 43-day pause, it may take some time for other businesses to resume as usual, including recuperation for national parks, food assistance, the Internal Revenue Service (IRS), and within the air travel system.
Reuters correspondents noted that “data on the U.S. economy from key statistical agencies” will be restored. The absence of data “left investors, policymakers and households largely in the dark about the health of the job market, the trajectory of inflation and the pace of consumer spending and economic growth.”
It’s likely that some data gaps will be permanent, as the White House reported that “employment and Consumer Price Index reports covering the month of October might never be released.”
According to Reuters and NPR, another potential shutdown could be in store by 2026, as the current bill “only funds the government through Jan. 30.” This leaves the federal government on a path to keep adding about $1.8 trillion a year to its $38 trillion in debt.