Trump administration shutdown resolution—federal employees, including air traffic controllers, return to work

On February 3, 2026, President Donald Trump signed a new appropriations bill, officially ending the four-day partial shutdown of the U.S. federal government. During this shutdown, approximately 225,000 federal employees, including air traffic controllers, were temporarily furloughed, but most government functions have since been restored.

Direct Impact on Air Traffic Controllers and Federal Employees

The shutdown lasted from January 31 through February 1 and continued until February 3, affecting about 78% of federal operations. The temporary furlough of essential personnel, including air traffic controllers, led to decreased efficiency in airspace management and heightened concerns among users. However, critical services such as Social Security payments and defense-related operations continued without interruption.

With the government reopening, all furloughed employees, including air traffic controllers, have returned to duty and are set to receive back pay. This has restored normal airspace management operations and ensured the smooth functioning of the aviation industry.

Partisan Negotiations over DHS Funding and Immigration Policy

The resolution of this shutdown resulted from a bipartisan compromise over the allocation and restrictions of funds for the Department of Homeland Security (DHS) and Immigration and Customs Enforcement (ICE). Democrats demanded safeguards against Trump’s aggressive immigration enforcement policies targeting high-profile cases.

On February 3, the House passed the bill in a highly close vote of 217–214, gaining some Democratic support. This outcome was also influenced by Trump’s strong pressure on Republicans to support the agreement, considering the approaching midterm elections and the desire to avoid prolonged chaos.

New Federal Budget Allocation System

Under the agreement, most federal agencies—including the Department of Defense, Department of Health and Human Services (HHS), Department of Transportation, Department of Education, and Department of the Treasury—secured funding through September 30, 2026, the end of the fiscal year.

Meanwhile, DHS will receive only short-term funding through February 13, 2026, with another funding negotiation scheduled before that deadline. This sets the stage for future policy debates regarding ICE operations.

Political Background and Market Impact

This shutdown marked Trump’s second partial shutdown during his second term. Compared to the record 43-day shutdown early in his tenure, this one was resolved much more quickly.

The reduction in uncertainty following the government reopening has fostered a bullish outlook among market participants, with many investors viewing this resolution as a sign of political stability. Trump’s swift actions on immigration policy and other agenda items are also drawing attention to future policy developments.