Federal Government Comes to a Halt

Today is the sixth day that the government has been shut down after lawmakers failed to reach an agreement before the September 30, 2025 deadline. Last week, the Senate rejected the House’s clean seven-week continuing resolution (CR), H.R. 5371, in a 55-45 vote. Three Democrats/Independents—Senators John Fetterman (D-PA), Catherine Cortez Masto (D-NV) and Angus King (I-ME)—voted in favor of the CR, while Senator Rand Paul (R-KY) was the only Republican to vote no. Senators also voted 47-53 against a competing Democratic proposal that would fund the government through October 31, extend expiring Affordable Care Act subsidies and reverse $1 trillion in Medicaid cuts. The Senate is in session this week and the House is not expected to return until October 14. Work in the Senate continues, with Committees holding hearings, markups and nomination meetings. On the floor, the Senate will move forward with consideration of the National Defense Authorization Act, their second tranche of en bloc nominations and additional votes again on the House passed short term funding bill.

Federal agencies are implementing contingency plans, with about 750,000 employees furloughed and “excepted” staff required to work without pay until funding is restored. The Congressional Budget Office estimates the lapse will cost agencies roughly $400 million per day. Mandatory programs such as Medicare, Medicaid, Social Security and federal student aid programs continue to operate, as do national security and public safety functions, while many public-facing services—including national parks, museums and research grant activity—are shuttered or delayed.

Contingency Plans Important for OME:

• Department of Education
• Department of Health and Human Services

A path forward remains unclear, with Senate Majority Leader John Thune saying there is “nothing to negotiate,” while Senate Minority Leader Chuck Schumer countered that “the ball is in their court.”