#GovShutdownOfficiallyEnded

The 35-day government shutdown in the US, which broke the record for the longest in history, has officially ended. President Trump signed a temporary budget bill into law, federal agencies have reopened, and more than 800,000 federal employees have begun receiving their salaries.

The economic impact was severe. According to Moody's Analytics, the shutdown caused approximately $11 billion in permanent damage to the American economy. Wiping out 0.1-0.2% of GDP each week, airport security lines lengthened, national parks closed, food inspections were disrupted, and small businesses and federal contractors faced billions of dollars in payment delays. The aviation sector (flight cancellations due to TSA employee absences), tourism, and retail were particularly hard hit.

The social impact was even more dramatic. Hundreds of thousands of workers, unpaid, were unable to pay their bills, demand for food banks exploded, and mortgage and credit card delays increased. Families with children were left adrift; Head Start programs have been shut down, jeopardizing the safety of millions of low-income citizens. Air traffic controllers signaled a strike in the final days of the shutdown, posing a risk to flight safety, which was the primary impetus for the agreement.

The three-week interim budget is now in effect; if no agreement is reached on wall funding by February 15th, the risk of another shutdown looms. While some short-term relief may be forthcoming, the devastating impact of such political crises on the economy and society has been laid bare once again. America is holding its breath, waiting for the next deadline.