The Government Re-Opening Brings Opportunity for Your Business
The big news at the end of last week out of Washington was that the Senate, after much intense deliberation, reached an agreement, subsequently passed by the House of Representatives to re-open the Government after enduring its longest shut down in history at 43 days. The new Continuing Resolution is set to fund the government through the end of January 2026.
With the Government and its institutions back in action, small business is also affected, we’ll explore how below.
After the resolution passed both houses, the freeze on government worker pay, civilian and military has ended. Employees will receive full compensation for missed paychecks effective immediately after the President signs the funding bill. Simply put, the close to 3 million government employees will be receiving a month’s worth of payment they have seen withheld, this week. One can easily surmise that this will result in a wave of economic activity in the forms of debt repayment, and purchases that were delayed or protracted, on retail and other expenses. Businesses catering to a demographic of federal hires, such as those operating near military communities, can expect to expect a boost in invoices being met and orders filled in the coming weeks.
All Government-run entities will reopen or resume operation as well. Not simply national parks and museums, but research programs, contract funding and more. Small businesses who operate in fields relying on government contracts, collaboration or aid from federal conglomerates finally get the breaks taken off and can resume operation.
The continuing resolution also puts a freeze on the layoffs planned to beset federal workers as the shutdown mustered on, restoring the job-security for some had they not already resigned from positions during the shutdown as was prevalent within the FAA among air traffic controllers.
With this solution passing congress, it is a positive result for the economy as a whole, however the billions of dollars lost and slowdown in GDP plus the Federal workforce placed in debt or who have resigned to seek other employment with their hand being forced while their pay was docked, will have a lingering affect through the rest of the year and into Q1 on 2026.
This resolution also prompts the release of jobs numbers delayed because of the shut down that the FED will closely scrutinize to arrive at decision on whether another interest rate cut after their December meeting will occur. Financial markets await this move and with national economic sentiment at a low point, spending will remain stagnant which creates an unfavorable operating environment for local brands and retailers alike.
Overall, this pause has caused just that: a pause in operations, sales, innovation, profits and outreach. It’s important for the small business owner now to work at resuming operations affected by the recent delays. Playing catch-up in any industry is not easy, that said, the best tool to get back up to speed in any industry is efficiency. During this time of ramping back up your operation or filling delayed orders, examine the operations and processes your business engages in, look for areas to optimize. Saving time and working to streamline operations on the front and back end are essential. The time saved moving forward, compounded will eventually equate and cover the losses both financial and temporal.
To gain personalized guidance for your business on this topic and others contact us.
- Vince Calace
Founder - Venture Business Development