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U.S. Government Reopens After 43-Day Shutdown as ACA Subsidy Deal Falters

A pivotal Democratic defection cleared the funding hurdle, with ACA subsidy extensions still unsettled.

Overview

  • The funding measure advanced after eight Senate Democrats shifted positions, setting the process of reopening the federal government in motion.
  • Budget offices estimate the stoppage cost the economy $7–14 billion in 2025, including about $11 billion in permanent lost output.
  • Interrupted BLS and Census operations created data gaps while consumer confidence fell to a three‑year low, complicating upcoming Federal Reserve decisions.
  • The exclusion of Affordable Care Act tax‑credit extensions could drive average premium increases starting January 2026 for 22 million enrollees, and OAPC estimates roughly 4 million could be priced out of coverage.
  • Analysts warn the episode undercuts U.S. institutional credibility and transmits risk to Mexico through trade, investment and supply‑chain ties.