Eyes On Washington: Shutdown Briefing – Day 17

Welcome to the Eyes on Washington: Shutdown Briefing. During the federal government shutdown, we will be sharing concise, client-focused updates to help you stay informed on key developments, legislative dynamics and potential impacts to your operations and federal engagement.

Breaking News

U.S. Department of Homeland Security (DHS) Secretary Kristi Noem announced at 5 p.m. on October 16 that more than 70,000 law enforcement officers who work for the DHS – including those serving in U.S. Customs and Border Patrol (CBP), Immigration and Customs Enforcement (ICE), Secret Service and Transportation Security Administration (TSA) – will be paid for all hours worked during the shutdown. She also stated that law enforcement officers will receive a "super check" by October 22 that will cover the four days unpaid, overtime and next pay period.

More than 200 national organizations and local groups are hosting "No Kings" protests on October 18 against the Trump Administration. Protests are expected to take place in New York, Chicago, Houston, Seattle, Philadelphia, Boston, Los Angeles and Washington, D.C.

Status Update

Today marks Day 17 of the federal government shutdown. Negotiations on reopening the government remain stalled.

Congressional Activity

The U.S. House of Representatives was originally scheduled to reconvene on October 20, but Speaker Mike Johnson (R-La.) canceled the planned votes, extending the chamber's operation under the 48-hour notice rule.

On October 17, the House held a pro forma session at 2 p.m. During the session, it was announced that the period from October 20 through October 26 would be designated as a district work period.

On October 16, the Republican-backed "clean CR" failed for an eighth time. The U.S. Senate will vote again on the House-passed measure on October 20.

Leadership Dynamics

• Democratic Leadership: Remains confident in Democrats' negotiating position on healthcare and has said "every day gets better for us" as the shutdown continues. In a news conference this morning, House Minority Leader Hakeem Jeffries (D-N.Y.) criticized the ongoing government shutdown, stating that part of the problem is the absence of House Republicans from meaningful negotiations. He expressed that their lack of engagement is prolonging the crisis and undermining efforts to reach a bipartisan solution.
• Republican Leadership: Is unified in the approach to blame Democrats for prolonging the shutdown. House Republicans are praising Speaker Johnson's and Senate Majority Leader John Thune's (R-S.D.) handling of the shutdown, with Rep. Dave Valadao (R-Calif.) stating that "folks in the district, they all seem pretty confident that we're doing the right things." However, several vulnerable Republicans in House battleground districts, led by Rep. Jen Kiggans (R-Va.), are expressing their support for a bipartisan bill to extend the Obamacare subsidies for one year.
• Bipartisan Engagement: With the House out of session and the Senate convening only on a pro-forma basis, new bipartisan efforts to open the government continue to stall.

Executive Branch Developments

• Presidential Engagement: Members of Congress react to President Donald Trump's decision to shift $8 billion in U.S. Department of Defense (DOD) funding to pay active-duty military members.
  • Sen. Susan Collins (R-Maine) expressed concern, stating, "We don't have the specifics" on whether the funds are being moved from unobligated balances or from research and technology programs.
  • Sen. Patty Murray (D-Wash.) asserted that she did not know whether the shift in funding was legal, declaring, "I do not know the answer to that question."
  • Sen. Lisa Murkowski (R-Alaska) echoed, "Where's it coming from? We haven't seen that."
  • Rep. Jim Himes (D-Conn.) called the move "probably not legal."
  • Sens. John Thune (R-S.D.) and Mike Rounds (R-S.D.) defended the move, with Sen. Thune claiming that "obviously they will replenish [the funding] and pay it back."
• Federal Layoffs: U.S. District Judge Susan Illston in San Francisco issued a temporary restraining order blocking the Trump Administration from proceeding with more than 4,000 federal layoffs tied to the ongoing government shutdown. The American Federation of Government Employees and other federal labor unions requested Illston block the administration from issuing such layoffs due to furloughed workers not having access to their work emails, emphasizing the absence of human resources specialists to assist with next steps.

Key Milestones Ahead

• Mid-October: The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) may begin to experience funding shortfalls. The White House has indicated that it will use tariff revenue to temporarily sustain this program.
• October 18: Nationwide demonstrations under the "No Kings" banner are planned.
• October 20: Senate staff are projected to miss their first full paycheck.
• October 20: The Senate is scheduled to vote on the Republican continuing resolution (CR).
• October 24: Federal civilian workers are projected to miss their first full paycheck.
• October 31: House staff and Pentagon workers are expected to miss their paychecks. Members of Congress will continue to receive pay throughout the shutdown.
• November 7: Non-exempt federal employees will have worked one month without pay.

Strategic Considerations for Clients

• Agency Engagement: Clients should anticipate delays in regulatory reviews, permitting and federal communications. 
• Contracting and Grants: Federal contractors may experience payment disruptions and limited access to agency personnel.
• Policy Positioning: The shutdown may create new leverage points in legislative negotiations. Clients with interests in appropriations, healthcare, defense and infrastructure should monitor developments closely.