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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
The U.S. Department of Agriculture (USDA) released a memo stating that it cannot use a contingency fund worth about $5 billion to maintain Supplemental Nutrition Assistance Program (SNAP) benefits beginning November 1. Approximately 42 million Americans receive these benefits nationwide. The memo also notes that if states choose to front the costs themselves, they will not receive federal reimbursement. Governors in Connecticut, Louisiana, New York, Vermont and Virginia have announced that they plan to fund these benefits if the federal government misses its November 1 deadline.
Democratic leaders from 25 states filed a lawsuit today in federal court against the Trump Administration over the USDA's decision not to use the contingency funds in an attempt to stop the suspension of SNAP benefits for the first time in the program's history.
Status Update
Today marks Day 28 of the federal government shutdown. Negotiations on reopening the government remain stalled.
Congressional Activity
- Democratic Leadership: Remains unified in calling for a renewal of Affordable Care Act (ACA) subsidies. As November 1 approaches, Democrats are hoping that as Americans see the increased cost of their healthcare premiums, Republicans will be pressured to renew the subsidies.
- Republican Leadership: Continues to blame Democrats for prolonging the shutdown. U.S. Senate Majority Leader John Thune (R-S.D.) said that a deal will likely come from rank-and-file members. This week, Sens. Ted Cruz (R-Texas) and Dan Sullivan (R-Alaska) are expected to introduce separate bills to pay air traffic controllers and active-duty military members.
- Bipartisan Engagement: The Senate is holding votes on the continuing resolution (CR), cloture and nominations, while the U.S. House of Representatives convenes on a pro forma basis.
Executive Branch Developments
- Presidential Engagement: President Donald Trump held an extended meeting with Japanese Prime Minister Sanae Takaichi and made remarks aboard the USS George Washington in Yokosuka, Japan, on Tuesday. His travels to Japan, Malaysia and South Korea continue to raise concerns about White House priorities amid the shutdown.
- Air Travel: Approximately 5,000 flights were delayed on October 27, a decrease from the 8,000 announced by U.S. Department of Transportation Secretary Sean Duffy the previous day. He warned that air traffic controllers who do not show up for work will not be compensated for missed time and that the already strained department will "let go" those repeatedly absent.
- Federal Worker Pay: The national president of the largest government employee union, representing 820,000 federal and Washington, D.C., workers, implored members of Congress to pass a short-term CR. He also demanded that members of Congress ensure backpay for furloughed employees, address rising costs and fix the appropriations process.
Key Milestones Ahead
- End of This Week: The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) may begin to experience funding shortfalls. Administration officials are exploring ways to continue WIC and SNAP nutrition benefits, including potentially using tariff revenues.
- October 31: House staff and Pentagon workers are expected to miss their paychecks. Members of Congress will continue to receive pay throughout the shutdown. Pentagon workers likely will be paid again by the administration using available balances in other accounts, as they were on October 15.
- November 1: The ACA open enrollment period begins. The House-passed CR does not include an extension of ACA tax credits, which are set to expire at the end of this year.
- November 4: Off-year gubernatorial elections are held in Virginia and New Jersey.
- 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.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
