President Trump said he reached a deal to end the government shutdown for three weeks to negotiate a border security package.
Trump, who prompted the shutdown to try to force funding for a wall on the southern border, thanked federal workers for their patience and the hardships they suffered.
“In a short while, I will sign a bill to open our government for three weeks, until Feb. 15,” the president said in a news conference. “I will make sure all employees receive their back pay very quickly or as soon as possible — it will happen fast.”
The move marks a rare retreat by the President, who acceded to demands by Democrats, who said they would not negotiate a security package while the government was closed.
The shutdown left 800,000 federal workers without paychecks, slowing down everything from arrivals at airports to visa applications and the IPO market.
VF Corp. recently said its plan to spin off its jeans and outlet businesses could be delayed by the shutdown. And even as the machinery of government restarts, the Securities and Exchange Commission, which has been working with a skeleton staff, will have to work through a significant backlog. Also delaying new listings and potentially slowing expected offerings from Revolve as well as Levi Strauss & Co.
While those delays could create headaches and missed opportunities, given the volatility in the market, the impact on federal workers could be felt more immediately and acutely by merchants.
Consultancy Challenger, Gray & Christmas Inc. projected the economy would lose $3.38 billion in consumer spending a month as government workers pull back.
Trump shutdown the unfunded portions of the government just before Christmas, and just before the rival Democrats retook control of the House, in a bid to secure $5.7 billion in funding for a wall along the Mexico border.
The wall was a key promise of Trump’s campaign for the White House and a controversial step to ward off illegal immigrants that the politician had promised would be paid for by Mexico.