WASHINGTON D.C. – After a record-breaking 40-day impasse, the United States Senate has reached a bipartisan agreement that paves the way for reopening the federal government. The deal, announced late Sunday, November 9, 2025 (Monday, November 10, EAT), provides a temporary funding measure and has spurred a rally in global markets hopeful for an end to the political standoff that has cost the US economy billions.

The shutdown, which began on October 1, 2025, became the longest in US history, surpassing the 35-day record set in 2018-2019. The stalemate stemmed from Congress's failure to pass appropriations legislation for the 2026 fiscal year amid sharp disagreements over federal spending, particularly the extension of health care subsidies under the Affordable Care Act (ACA).

Details of the Bipartisan Agreement

The breakthrough was reportedly led by a group of moderate senators, including Democrats Jeanne Shaheen and Maggie Hassan, and Independent Angus King, in coordination with Senate Republican leadership and the White House. The agreement combines three full-year appropriations bills for certain departments with a continuing resolution to fund the rest of the government at existing levels through January 30, 2026.

Key provisions of the deal include:

• Temporary Funding: A stopgap measure to fund government operations until late January, allowing lawmakers more time to negotiate a full-year budget.
• Food Assistance: Full funding for the Supplemental Nutrition Assistance Program (SNAP) through September 2026, a critical point of contention that threatened food aid for over 42 million low-income Americans.
• Federal Workers: The agreement reverses layoff notices issued to thousands of federal workers during the shutdown and ensures they will receive back pay.
• Healthcare Subsidies: In a major concession from Democrats, the deal does not include an immediate extension of the ACA subsidies. Instead, it secures a commitment from Republican leadership for a separate Senate vote on the matter by mid-December.

The Senate took a crucial procedural vote late Sunday night, advancing the measure with a 60-40 vote, with eight Democrats and one Independent joining the Republicans. However, the bill must still pass further votes in the Senate before moving to the House of Representatives for approval and then to President Donald Trump for his signature. President Trump has indicated his support, telling reporters, "it looks like we're getting close to the shutdown ending."

Economic and Global Impact

The 40-day shutdown has inflicted significant damage on the US economy. The non-partisan Congressional Budget Office (CBO) estimated the economy lost at least $18 billion during the fourth quarter of 2025. White House economic advisers warned that US economic growth could turn negative if the shutdown continued, with estimates of weekly losses ranging from $7 billion to $16 billion. The shutdown also led to a sharp drop in US consumer sentiment in November to its lowest level since 1978, according to a University of Michigan survey.

The news of a potential resolution sent a wave of relief through global financial markets, with stock futures rising in Asia and the US. A prolonged shutdown had worried investors, contributing to market volatility and a flight to safer assets.

Relevance for Kenya and East Africa

While the direct impact on Kenya has been limited, a protracted US shutdown posed several risks to the nation's interests. The US is a major development partner, providing hundreds of millions of dollars in aid for health, agriculture, and economic growth. Political instability in Washington can threaten the reliable disbursement of these funds.

Furthermore, the shutdown had the potential to stall crucial trade negotiations, particularly concerning a successor to the African Growth and Opportunity Act (AGOA), which is vital for Kenya's textile industry. The US Embassy in Nairobi had already scaled back some operations, which could have slowed diplomatic and trade dialogues. The potential for widespread flight disruptions in the US due to unpaid air traffic controllers also posed a threat to Kenya's horticultural exports and tourism sector, which relies on American visitors.

The end of the shutdown is expected to restore normal government operations, including those of agencies crucial for international relations and trade, providing a more stable environment for ongoing US-Kenya partnerships and negotiations.