Senate Reaffirms Back Pay For 41 Days Of Missed Wages As Shutdown Nears End - SPDR S&P 500 (ARCA:SPY)

Core Points - The U.S. Senate has passed a funding bill to reopen the government, which will fund agencies through January 2026 and provide retroactive compensation for federal workers affected since October 1 [1] - The Government Employee Fair Treatment Act of 2019 (GEFTA) ensures that all federal employees receive pay for the period of the funding lapse, starting from December 22, 2018 [2][5] - The processing of back pay for furloughed and essential federal workers will begin immediately upon the bill's enactment, with agencies directed to treat furlough days as paid hours [3][6] Federal Workers Compensation - Furloughed workers will accrue annual and sick leave as if they were on duty, avoiding penalties under the Fair Labor Standards Act [4] - Most furloughed workers expect lump-sum deposits by November 21-28, which will include arrears for October and November, similar to the timeline observed during the 2019 shutdown [4] Legislative Context - GEFTA was enacted to mandate back pay for both furloughed employees and essential staff who worked unpaid during the shutdown [5] - There has been controversy regarding the interpretation of the law, with some arguing that explicit congressional funding is required, which has been rebuked by bipartisan lawmakers [7][8] Market Reaction - Following the Senate's passing of the funding bill, futures for major indices such as the S&P 500, Nasdaq 100, and Dow Jones rose, indicating positive market sentiment [9]