Federal Services Agencies Gradually Return to Work After 35-Day Shutdown

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  Published in Politics and Government on Thu, Dec 12th, 2025 by ABC News
      Locale: UNITED STATES

Federal Services Agencies Gradually Return to Work After the 35‑Day Shutdown

After a 35‑day government shutdown that began on Dec. 22, 2023, federal agencies have started to slowly reopen. A bipartisan funding package was signed into law on Jan. 22, 2024, and the first wave of federal employees – many of whom had been furloughed – are now reporting to their desks. The “slow return” has left citizens and businesses in a state of limbo, with some services fully back online while others remain partially staffed or closed entirely.

The Shutdown and Its Aftermath

The shutdown, the longest in U.S. history, stemmed from a budget impasse between House and Senate Republicans and Democratic leadership over the federal fiscal year. The dispute centered on funding for the Department of Homeland Security (DHS), the U.S. Postal Service (USPS), and the “unfunded mandates” attached to certain legislation. The funding package that ended the shutdown was a compromise that extended $75 billion of appropriations, with the money allocated in phases to allow agencies to rebuild staff and resources gradually.

The ABC News story, which can be read in full here, notes that over 5 million federal employees were furloughed during the shutdown. While some agencies – notably those deemed essential for national security – were allowed to operate with limited staffing, many non‑essential agencies remained shut down, leaving millions of Americans without access to passport renewals, visa appointments, and federal court filings.

Which Agencies Are Back?

While the table above lists the most visible agencies, several others – the Department of Education, the Department of Health & Human Services, the Department of Commerce, and the Department of State – have also begun operating, but many still operate on a “partial‑staff” basis. The ABC article stresses that the phased approach meant that agencies were allowed to reopen only after they had received their full funding allotments, which varied by agency and by the severity of the budget shortfall.

Ongoing Challenges

• Passport and Visa Delays: Many passport agencies and U.S. consulates worldwide remain closed or have drastically reduced staff, resulting in long wait times for travelers and visa applicants. The article cites a U.S. State Department spokesperson who said that the “passport backlog could extend for weeks more” as employees return to work.

• Federal Court System: While federal courts have reopened, the backlog of cases continues to grow. Many judges are still missing, and the courts are working to schedule hearing dates as quickly as possible. The article references a separate ABC report on the “federal court backlog” for further reading.

• Tax Season Chaos: The Department of the Treasury’s IRS is experiencing a “tax‑return processing delay” because the agency had to rebuild its payroll and data‑processing systems. A link to ABC’s coverage of the IRS’s tax‑season woes provides context for the current slowdown.

• Postal Service Staffing: Although the USPS is a private corporation, it is heavily intertwined with the federal infrastructure. The article links to a piece about the “post office labor shortage” and the impact on mail delivery. The USPS’s own hiring and training program is under strain due to the shutdown’s abrupt halt to operations.

The Road Ahead

The ABC article ends on a cautiously optimistic note. Officials say that as more federal employees return and the full budget is distributed, agencies will begin to operate at normal capacity. However, the article warns that the ripple effects of the shutdown may linger for months. “The long‑term cost of a shutdown isn’t just the immediate service interruptions; it’s also the erosion of public trust and the damage to the federal workforce’s morale,” one DHS spokesperson said.

In sum, federal services agencies are slowly returning to full operation, but the phased reopening, limited staffing, and lingering budget gaps mean that many services remain disrupted. For travelers, taxpayers, veterans, and the general public, patience will likely be required as the federal government regains its footing after the longest shutdown in American history. For those wanting a deeper dive into how the shutdown affected specific agencies, ABC News provides additional coverage through linked articles such as “What Services Were Affected by the Shutdown?” and “How Long Did the Shutdown Last?”