May 26, 2026
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The End of America’s Longest Shutdown: What It Means for Austin and Texas

After 43 grueling days, the longest government shutdown in American history has come to an end. President Donald Trump signed legislation late Wednesday night that reopens the federal government, bringing relief to hundreds of thousands of federal workers across Texas who have been working without pay or sitting at home on furlough since October 1st.

CBS News

How the Stalemate Finally Broke

The breakthrough came over a tense weekend of negotiations when eight moderate Democrats made the difficult decision to join Republicans in advancing a funding package, even though it didn’t guarantee an extension of Affordable Care Act health insurance subsidies that Democrats had been demanding. The Senate passed the measure 60-40 on Monday night, with Texas Senators John Cornyn and Ted Cruz both voting in favor. The House followed suit Wednesday evening with a 222-209 vote, clearing the way for Trump’s signature just hours later.

Senator John Cornyn played a critical role in the final push, rushing back from Texas to Washington to provide the crucial 60th vote needed to advance the bill in a procedural vote on Sunday. Without his presence, the Senate couldn’t have moved forward.

The funding package extends government operations through January 30th for most agencies, while fully funding agriculture programs (including SNAP food assistance), military construction and veterans’ affairs, and the legislative branch through September. It also reverses mass layoffs of federal workers that occurred during the shutdown and guarantees back pay for all affected employees.

CBS Austin

What It Means for Austin

Austin, with its significant federal workforce and role as the state capital, felt the shutdown’s impacts acutely. Federal workers at Austin-Bergstrom International Airport, including TSA officers and air traffic controllers, continued reporting to work throughout the shutdown without paychecks. While travelers didn’t experience major disruptions at Austin’s airport initially, federal workers struggled to pay bills and meet basic needs.

The economic ripple effects extended well beyond federal employees. Grant Richardson, an Austin entrepreneur who founded wine import company Pangea Selections, found himself unable to close on a six-figure Small Business Administration loan while the government was shut down. He also couldn’t seal deals with winemakers because the government wasn’t approving new bottle labels, and was still waiting to receive roughly $10,000 in business tax credits.

For Austin’s many federal contractors and businesses that serve federal workers, the shutdown meant reduced foot traffic and declining revenues. Some businesses reported drops of 20-40% as federal employees tightened their belts.

The Texas Impact

Texas, home to more than 130,000 federal civilian employees and over 224,000 federal workers total when including military personnel, was one of the hardest-hit states. Only California, Virginia, and Maryland have more federal workers. This made Texas particularly vulnerable to the shutdown’s economic and social disruptions.

The state faced potential crises on multiple fronts. More than 3.5 million Texans who rely on SNAP benefits (more than any other state) saw their food assistance threatened, though courts ordered the administration to continue partial payments. The shutdown disrupted operations at major Texas facilities including NASA’s Johnson Space Center in Houston, military bases across the state, and Veterans Administration facilities.

Air travel chaos hit Texas particularly hard, with the FAA ordering 10% flight reductions at Dallas-Fort Worth International Airport, George Bush Intercontinental Airport, and Houston Hobby Airport due to air traffic controller staffing shortages. Over 1,000 flights nationwide were canceled on a single Friday as the shutdown dragged on.

Even though the shutdown is ending, air passengers can expect delays and cancellations to continue for a while.

CBS Austin

Reactions from Texas Lawmakers

The shutdown revealed deep partisan divisions among Texas’ congressional delegation. All 25 Texas Republicans in the House voted for the initial continuing resolution in September that would have extended funding, while all 12 Texas House Democrats voted against it, demanding negotiations on healthcare subsidies.

Senator Ted Cruz defended his party’s position throughout the crisis, arguing on his podcast that Democrats caused the shutdown by blocking what he called a “clean” continuing resolution. He predicted after Monday’s Senate vote that airports would return to normal operations within a week of reopening.

Senator John Cornyn warned before the final vote that “failure of the House-passed CR will all but guarantee a shutdown,” and his rush back to Washington for the crucial Sunday vote demonstrated his commitment to ending the impasse.

However, prominent Texas Democrats sharply criticized the deal. Colin Allred, former congressman and Senate candidate, called it “a joke that sells out working people and their health care.” State Representative James Talarico added that “any ‘deal’ that kicks 1.7 million Texans off their health insurance isn’t compromise; it’s surrender.”

Rep. Lloyd Doggett agreed:

Rep. Jasmine Crockett of Dallas framed the shutdown as evidence of Republican ineffectiveness: “This really goes to show you just how ineffective the Republicans are when it comes to governance.”

KENS-TV

What Each Side Gained and Lost

Republican Gains:

  • Avoided negotiating on healthcare subsidies as a precondition for reopening government
  • Maintained their position on keeping the continuing resolution “clean” without additional Democratic priorities
  • Secured reversal of federal worker layoffs while restoring government operations
  • Got agreement on full-year funding for agriculture, veterans, and military construction programs

Republican Losses:

  • The record-long shutdown inflicted political damage, with Trump himself acknowledging it was “killing the Republican Party”
  • Democrats blamed the shutdown on Republican dysfunction, potentially impacting future elections
  • The deal still requires them to address funding again by January 30th
  • They agreed to hold a future vote on healthcare subsidies with no guaranteed outcome

Democratic Gains:

  • Forced Republicans to agree to a mid-December vote on extending ACA subsidies, keeping the issue alive
  • Secured full reversal of federal worker layoffs during the shutdown
  • Demonstrated party unity for 40+ days before moderates broke ranks
  • Made healthcare subsidies a central political issue heading into 2026 elections

Democratic Losses:

  • Failed to secure guaranteed extension of ACA subsidies that expire in November
  • Eight Democratic senators and one independent broke with the caucus to support the deal, revealing divisions
  • Approximately 1.7 million Texans could lose health insurance coverage if subsidies aren’t extended
  • Accepted a short-term deal that only funds government through January, setting up another potential showdown

The Unresolved Healthcare Crisis

Perhaps the biggest unresolved issue is the fate of enhanced Affordable Care Act subsidies that help 24 million Americans afford health insurance. In Texas alone, roughly 1.7 million people could see dramatic premium increases if the subsidies aren’t extended when they expire at the end of November.

Senate Majority Leader John Thune promised a vote by mid-December on legislation to extend the subsidies, but there’s no guarantee it will pass. This leaves hundreds of thousands of Texas families in limbo, uncertain whether they’ll be able to afford health insurance in 2026.

Looking Ahead

While the immediate crisis has passed, the underlying tensions remain unresolved. The government is only funded through January 30th, meaning Congress will need to negotiate another funding package or face another potential shutdown in just over two months.

For Austin and Texas, the priority now is getting federal workers their back pay as quickly as possible and ensuring disrupted services return to normal. Federal law requires back pay to be distributed “at the earliest date possible,” and agencies across Texas are already directing employees to report back to work.

The 43-day shutdown inflicted real hardship on federal workers, their families, and the businesses that depend on them. As Senator Susan Collins of Maine, chair of the Senate Appropriations Committee, said upon passage: she was “relieved” that the shutdown was finally ending.

But with another funding deadline looming in less than three months and the healthcare subsidy issue still unresolved, Texas and the nation may not be out of the woods yet. The question now is whether lawmakers learned anything from the longest shutdown in American history — or whether we’re simply catching our breath before the next crisis begins.

Federal workers who need assistance can contact their unions for resources. The Partnership for Public Service has compiled government shutdown resources at partnershipforpublicservice.org.



The Austin City Council‘s first budget meeting—scheduled for today—was canceled Wednesday afternoon after attorneys Bill Aleshire and Rick Fine warned that the council might be violating the Texas Open Meetings Act (TOMA).

“They’re rushing this process, and they are not being fair to the public by not making it easy for them to see what the budget actually contains.” — Austin attorney Bill Aleshire

The meeting was originally intended to discuss the proposed budget amendments released by the city manager following the failure of Proposition Q.

KXAN-TV

Austin Mayor Kirk Watson took to social media Wednesday for his latest Watson Wire where he talked about his recent trip to Brazil.



Several incidents Wednesday marked a busy day not only for Austin Police, but other communities in the ATX.

A shooting at a CapMetro bus stop downtown Wednesday morning took the life of a man and launched a manhunt for the person responsible.

This is the city’s 48th homicide of 2025.

KXAN-TV

Two SWAT situations in the region yesterday…

CBS Austin

Hays County authorities in Buda had a similar situation on their hands Wednesday.

Also from Hays County, law enforcement is looking for a suspect vehicle involved in a shooting in Kyle last week.

More from Kyle: a suspicious vehicle stop resulted in the seizure of a stolen handgun and drugs.

A man wanted for not registering as a sex offender is wanted by the APD.



A UT Austin student who was murdered 45 years ago is finally having justice served as her killer has been sentenced to prison.



A woman sitting at a bus stop was reportedly struck and killed by a car just before 10:00 p.m. on Burton Drive near Riverside.

(Above photos: CBS Austin)

As APD noted in their earlier release, the victim later died of their injuries.

Video: Reporte Austin





Yet again, early this morning, a pedestrian was struck by a vehicle in South Austin.

The driver of the vehicle remained on scene as the investigation continued.





Police are investigating after officers responding to a welfare check in North Austin early Wednesday found a person with injuries. (CBS Austin)



Austinites are weighing in after an annual report tracked a wide range of complaints against the Austin Police Department.

KVUE-TV

Meanwhile, on day four of the deadly conduct trial for Austin police officer Daniel Sanchez, the defense will begin to call its witnesses. The State rested on Monday and there was a break Tuesday for Veterans Day.

KXAN-TV


CapMetro has begun construction on the new North Burnet/Uptown Station, a major addition to the city’s Red Line corridor connecting downtown Austin to Leander. (KVUE-TV)





WEATHER


WEDNESDAY’S HIGH / LOW TEMPERATURES

AUSTIN-BERGSTROM INTERNATIONAL AIRPORT

CAMP MABRY



5-DAY FORECAST / AUSTIN, TEXAS

AccuWeather/Austin

When will chilly temperatures turn cold in Austin?

KXAN-TV


Have you seen them? The Northern Lights are dazzling skygazers here in Texas.

FOX 7 Austin



Paxton’s Wednesday announcement comes to no surprise, since the state’s top prosecutor initially declared his intentions back in April. (KUT 90.5)



Texas lawmakers today will hold their first hearing to review speech on public universities after some reactions on campuses celebrating or mocking the killing of conservative activist Charlie Kirk drew ire from Republican leaders. (Texas Tribune)



San Antonio police officer Jacob Ryan faces three felony charges of injury to a child related to “off-duty incidents” that occurred last year, department officials said late Tuesday. (San Antonio Current)



Energy giant Chevron announced plans for a new West Texas power project to supply energy to an unnamed AI data center by 2027. The 5,000-megawatt, natural gas–fired facility marks Chevron’s first move into powering AI infrastructure. (FOX 7 Austin)




Healthcare subsidies were a central issue that led to the federal government shutdown. Now that a deal is in the works, what happens to them?


We’re still waiting to hear from courts on whether new Texas district lines will be in place for the 2026 election. We’ll dig into the potential impacts in Houston.


In Austin, voters turned down a property tax increase. What does that mean now for the city’s budget?


Plus, the challenge of envisioning a truly bikeable Dallas.


Those stories, a political push from a Fort Worth megachurch, and a sports break looking at how women’s basketball is heating up with UT, Baylor and TCU in the mix.

(Episode from November 12, 2025)



Everyone’s favorite interstate rest stop is doing battle once again with another business allegedly infringing on its copyright.

KHOU-TV


SPORTS


COLLEGE BASKETBALL: A solid win for the Texas Longhorns last night.

Graduate guard Tramon Mark posted a game-high 20 points and sophomore center Matas Vokietaitis added 19 points to pace Texas (2-1) to a 93-58 win over FDU (0-3) on Wednesday night in Moody Center. The Longhorns improved to 27-1 all-time in non-conference home games in Moody Center with the victory. (Texas Longhorns)

ESPN

ON THE SCHEDULE

Top-ranked Houston won easily at home Wednesday night.



NBA: The firing of Dallas Mavericks GM Nico Harrison apparently lit no fire under the team last night.

Devin Booker had 26 points and nine assists, Grayson Allen scored four of his 23 points in a key late stretch and the Phoenix Suns held off the Dallas Mavericks 123-114 on Wednesday night for their fourth straight victory.

Dallas played for the first time since the Tuesday morning firing of general manager Nico Harrison, embattled since making the controversial Feb. 2 trade that sent superstar Luka Doncic to the Los Angeles Lakers. (Yahoo! Sports)

NBA

Former Mavericks star and current Los Angeles Laker Luka Doncic spoke on the firing of Dallas Mavs GM Nico Harrison.

WFAA-TV

In other action last night, a win for the Rockets and a loss for the Spurs.

Dallas, Houston and San Antonio all have tonight off.

STANDINGS



NHL: After an overtime win in Ottawa Tuesday night, the Dallas Stars remain in Canada tonight to face Montreal.



COLLEGE FOOTBALL: Injury-wise, the Texas Longhorns are in good shape ahead of their SEC showdown in Athens this weekend.

KVUE-TV

Texas Football 2 DAYS From HUGE Test @ UGA | LIVE | 11/13/25

Texas Sports Unfiltered


Ted Danson, Woody Harrelson, and Jesse Eisenberg recently got together for their very first live podcast taping in Austin at the Alamo Drafthouse. They were there to discuss Woody and Jesse’s new movie, “Now You See Me: Now You Don’t,” and they got into a lot more, including “Zombieland,” Jesse’s plans to donate his kidney, and his Polish citizenship.

TeamCoco

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