Government Shutdown Ends, but Economic Damage Has Been Done and Recovery Will Take Time

The longest federal government shutdown in U.S. history has ended, but a return to normal operations could take considerable time. Millions of federal workers, government services, and systems remain stretched thin as the 43-day standoff concludes.

While Congress and the president have agreed to reopen the government, the biggest question for nearly 1.5 million federal employees who went without paychecks is: when will the money come?

Under the 2019 Government Employee Fair Treatment Act, both furloughed employees and those forced to work without pay are guaranteed back pay. However, the money won't arrive immediately.

"The clock starts the moment the bill is signed and starts as law," explained Shaun Southworth on Instagram, a federal employment attorney.

While attorneys predict most employees should receive lump sum payments within days, some agencies may take longer to distribute the funds.

In recognition of the strain on employees during the shutdown, Homeland Security Secretary Kristi Noem announced bonuses for some TSA agents who remained on the job.

"We are going to be handing out bonus checks of $10,000 to TSOs who worked with TSA and served with exemplary service," Noem stated.

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or other essential workers like air traffic controllers, who also worked without pay, the shutdown's impact continues. The Federal Aviation Administration is now racing to reverse flight reductions imposed at major airports, though airlines warn full flight schedules likely won't be restored until after Thanksgiving.

On the ground, public institutions are reopening in phases. National Park Service officials report that parks were left vulnerable during the shutdown and now face months of cleanup and lost revenue.

The shutdown also created uncertainty for millions of Americans who depend on food assistance. While the SNAP program is now funded through next September, the Internal Revenue Service faces a backlog from weeks of inactivity that will likely cause tax refund delays.

The economic impact could be significant, according to analysts.

"Fourth quarter growth could have contraction of 1.5 percent during that three-month period, and by contrast, the growth for a full year is averaging around 2 percent. That's a significant hit," said Mark Hamrick, senior economic analyst at Bankrate.

Economists say the shutdown's impact serves as a stark reminder that even with the government's doors reopened, the financial aftermath is far from over.