Government Reopens After 43 Days: Analyzing the Path to U.S. Economic and Public Recovery

Oscillation effect in a closed state

The government shutdown began in October 2025, as Congress failed to approve the new fiscal year budget in a timely manner. During the shutdown, numerous federal agencies were unable to operate normally, resulting in interruptions to various public services, reduced airport flights, delayed food assistance, and some employees being furloughed without pay, which significantly affected the lives of the public in a short period of time.

The first batch of recovery measures after the restart

With the signing of the funding bill, the government has officially reopened. Federal employees are starting to return to their positions, and the back pay plan has also been initiated. The social security system, such as food assistance (SNAP), is gradually resuming normal distribution. The budgets of most agencies have been extended until January 30, 2026, while some projects have received longer-term budget coverage, allowing agencies to gradually restore their operational capabilities.

Public assistance and responses to vulnerable groups

Food assistance interruptions have affected over 42 million Americans. After the shutdown ended, state departments quickly began to restore processes, but due to previous interruptions in review and disbursement, there is still a backlog in the short term. Families of federal employees on unpaid leave are also under significant financial pressure, even though back pay has been confirmed, restoring household cash flow will still take some time. Overall, the recovery of the livelihood system is gradual rather than an instant return to normal.

Short-term warming signals in the economic market

During the suspension period, multiple economic data were unable to be released normally, making it difficult for businesses and the market to accurately assess the economic direction. After the closure ended, the restoration of wage supplements and public spending provided short-term support to the market, helping to boost consumption and service industry activities. At the same time, there were also slight signs of recovery in the cryptocurrency market, stock market, and bond market. However, the productivity losses and weakened confidence caused by the prolonged government shutdown will still take weeks or months to fully digest.

The risk of the next budget stalemate has not yet been resolved.

Although the government restart brings short-term stability, core budget disputes and differences over healthcare subsidies remain unresolved. If Congress cannot reach a new funding agreement by early 2026, the U.S. may still face the risk of another shutdown. Analysts generally believe that this restart is a temporary solution rather than a fundamental reform, and attention to future fiscal negotiations will continue to rise.