US Government Reopens

Khánh Minh |

On the morning of November 13, Vietnam time, President Donald Trump signed a decree to reopen the US Government after 43 days of paralysis, ending the longest closure in history.

President Donald Trump signed the law after the Republican-controlled US House of Representatives voted in favor of the budget spending package with 222 votes in favor and 209 against, thanks to the support of President Donald Trump, despite facing strong opposition from the Democrats - who were angry because the Senate could not ensure the extension of the federal health insurance subsidy.

With the signing of the decree, federal civil servants who are on leave will return to work from November 13 US time, although the time to fully restore government services is still unclear. Accordingly, about 670,000 civil servants who have to temporarily quit will return to work and the same number will be forced to work unpaid, including more than 60,000 airport control and security staff, who will be paid their full salary.

The budget package approved by both the House and Senate will also add funding to the Department of Defense, the Department of Agriculture, veteran agencies and the Congress through the fall of next year, while the remaining agencies will maintain funding through the end of January 2026, meaning the US government will continue to increase about $1.8 trillion a year to the current $38 trillion debt.

The end of the closure brings hope to important services, especially in the aviation sector, as the Thanksgiving tourism season is only 2 weeks away. Supporting food for millions of families also helps households arrange their budgets, creating conditions for the Christmas shopping season. In addition, restoring economic data flows from important statistics agencies will help investors, policymakers and people better understand the labor market, inflation and consumer growth rate.

However, some data may never be released, such as the October jobs report and consumer price index (CPI), according to the White House. According to economists, the closure has caused the US GDP to fall more than 0.1% per week for about 6 weeks of closure, although much of this decline is expected to recover in the coming months.

However, the issue of health insurance benefits is still unclear. The budget package was expected to pave the way for the Senate to vote on these subsidies in December, but House Speaker Mike Johnson did not make a similar commitment. Democratic Congressman Mikie Sherrill, who was recently elected Governor of New Jersey, opposed the bill in his final speech in the House of Representatives, calling on his colleagues to protect the people's rights.

Meanwhile, President Donald Trump expressed his goodwill to cooperate with Democratic leaders on health care, right before signing a decree to end the government shutdown. "I am always ready to work with anyone, including the opposition party," Trump said.

The long-term stalemate stems from the desire of the Democrats to maintain tax reductions to support people to buy health insurance under the Affordable Care Act (ACA), which will expire at the end of this year. They are determined not to approve the temporary spending package if this clause is not extended. Meanwhile, the Republican side affirmed that this is a separate policy issue that needs to be considered in another framework. The tug-of-war only ended when the Republicans won, but after weeks of government shutdowns, the losses spread across the United States.

According to a Reuters/Ipsos survey, 50% of Americans blame the Republican Party and 47% blame the Democratic Party for the recent government shutdown.

Khánh Minh
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US Government Reopens

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Khương Duy |

Despite a downward trend, the world gold price last night was still anchored above 4,100 USD/ounce.