US Senate advances plan to end longest shutdown

A group of moderate Democrats broke ranks with party leaders and voted to support a deal

- Bloomberg [e-mail]

The US Senate will need the consent of all members to end the shutdown quickly.

(BLOOMBERG)

The US Senate took a major step toward reopening the government after a group of moderate Democrats broke with their party leaders and voted to support a deal to end the record-breaking shutdown.

The Senate voted 60-40 on a procedural measure to advance the bill Sunday evening. The Senate adjourned until Monday and has not yet scheduled a vote for final passage. The House also needs to approve the measure before it goes to President Donald Trump's desk for his signature.

Under the agreement, Congress would pass full-year funding for the departments of Agriculture, Veterans Affairs and Congress itself, while funding other agencies through 30 January. The bill would provide pay for furloughed government workers, resume withheld federal payments to states and localities and recall agency employees who were laid off during the shutdown.

It's not yet clear how quickly the shutdown can end, but it will likely take several days. The Senate will need the consent of all members to end the standoff quickly. Any one senator can force days of procedural delays.

Speaker Mike Johnson plans to give House lawmakers 36 hours' notice to return to Washington.

"It looks like we're getting closer to the shutdown ending," Trump told reporters on Sunday evening as he returned to the White House.

Contracts for the S&P 500 rose 0.7% and those for the Nasdaq 100 index advanced 1.1% as prospects for the deal boosted appetite for risk. Asian shares also gained, while bonds fell across the curve with the yield on 10-year Treasuries rising three basis points to 4.13%. The yen, a traditional safe haven currency, fell 0.3% against the dollar.

Democratic Senator Tim Kaine, whose state of Virginia is home to many federal workers, supported the deal, citing the bill's ban on new federal layoffs through 30 January.