Federal Government is Open for Business...For Now

November 17, 2025

The United States Government officially reopened last week. This ends a record-breaking 43-day shutdown that disrupted federal operations and the broader economy. The closure affected government workers, delayed SNAP benefits, and caused disruptions in air travel. It also halted the release of key economic data, leaving the Federal Reserve with less visibility into the state of the economy and complicating future policy decisions.

What's Open?  How Long?

Lawmakers reached an agreement to reopen the government, providing full-year funding for the Agriculture Department (which oversees SNAP benefits), the Department of Veterans Affairs, and the legislative branch. The legislation also reverses federal layoffs initiated during the shutdown and places a moratorium on future workforce cuts to help stabilize operations and prevent further disruptions. The rest of the government is funded through January 30, giving Congress time to complete appropriations bills for the 2026 budget. If lawmakers fail to meet that deadline, the government could once again face a similar funding standoff.

Data Gap Influence on the Federal Reserve

With operations resuming, government agencies are expected to release updated schedules for delayed economic data. During the six-week shutdown, agencies were unable to publish or collect data for key reports, leaving significant gaps in October’s figures. As a result, the White House press secretary said several major reports, including those on inflation and employment, are unlikely to be released.

Data collection has now resumed, and agencies are working to get back on track. However, some information for October will likely remain incomplete. This data gap poses a challenge for the Federal Reserve ahead of its next policy meeting on December 9–10, where officials will decide whether to hold interest rates steady or implement another rate cut. Markets currently see less than a 50% chance of a rate cut at the upcoming meeting.

As fresh economic reports are released, they will help shape the Fed’s rate path and influence market sentiment. We will continue to monitor developments in government data and their implications for portfolios. As always, if you have any questions, please reach out to your advisor.  Your financial success matters.