Eyes On Washington: Shutdown Briefing – Day 37

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 Low-Income Home Energy Assistance Program, a major safety net that helps households cover energy costs, is likely to lose funding by the end of the week.

The U.S. Supreme Court began hearing arguments on November 5 weighing whether President Donald Trump overstepped his presidential authority in imposing sweeping global tariffs. The issue is on whether the president has the legal authority to levy tariffs on a foreign country in order to address a national emergency, such as the fentanyl crisis, illegal migration or persistent trade deficits.

The Federal Aviation Administration (FAA) announced that it will decrease air travel capacity by 10 percent in 40 high-volume airports across the U.S. Airlines are operating under the understanding that they will have to reduce their schedules by at least 4 percent on November 7, at least 5 percent on November 8 and then hit the 10 percent mark by next week, although no official final order has been issued.

About 700,000 federal employees have been furloughed without pay, and about 700,000 more federal workers have been working without pay through the shutdown.

Status Update

Today marks Day 37 of the federal government shutdown. Negotiations around reopening the government are ongoing, but a resolution is not clear yet.

Congressional Activity

• Democratic Leadership: A swing group of Democrats seem willing to accept a Republican offer, including a continuing resolution (CR), a package of appropriation bills and a vote on the Affordable Care Act (ACA) subsidies. However, the November 4 Democratic victories across the country are likely to embolden party firebrands to hold out for longer. U.S. Senate Democrats are expected to gather for a caucus meeting today to discuss how to get Republicans to agree on extending the expiring ACA subsidies.
• Republican Leadership: Maintains in the Senate that a clean CR is the best way to reopen the government but is under the current 60-vote threshold for the filibuster. Majority Leader John Thune (R-S.D.) will not advance a rules change to eliminate the filibuster, meaning Democrat support is required to pass a CR in the Senate.
• Bipartisan Engagement: Bipartisan talks continue behind closed doors. The U.S. House of Representatives remains adjourned until a pro forma session scheduled for 2 p.m. on November 7, and members will be given at least 48 hours to return before any votes will be called. There is growing consensus that to pass a CR, a deal must be achieved to move forward on three appropriations bills packaged in a "minibus" – Agriculture-Food and Drug Administration (FDA), Military Construction-Veterans Affairs (VA) and Legislative Branch – which forms the basis of a new Republican offer that potentially includes provisions to reverse recent federal employee firings and provide back pay.

Executive Branch Developments

• Presidential Engagement: President Trump has called on Republican Senators to eliminate the filibuster, to no avail. Republican Senators would not be able to achieve enough votes to pass this new rule.
• Troop Pay: Even though service members were paid on October 31, U.S. Department of the Treasury Secretary Scott Bessent said it's doubtful that service members will receive pay on November 15 unless the shutdown ends.
• Air Traffic Control: U.S. Department of Transportation Secretary Sean Duffy said that the FAA will begin cutting the number of flights in "high traffic" parts of the country as the government shutdown continues. He says there will be a 10 percent reduction in capacity at 40 locations, with knock-on effects expected throughout the airspace.
• SNAP and WIC Funding: On October 31, the Trump Administration quietly readied $450 million to fund the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) as the shutdown continues. The Trump Administration is using Supplemental Nutrition Assistance Program (SNAP) contingency funds to issue partial food stamp payments to roughly 42 million Americans in November 2025. Recipients of federal food benefits under SNAP will see their allotments reduced by 35 percent instead of the halved that was predicted.

Key Milestones

• November 7: Non-exempt federal employees will have worked one month without pay.
• November 15: Military payday.
• November 17: Senate staff are projected to miss their third full paycheck.
• November 28: House staff are expected to miss their second full paycheck. Members of Congress continue to be paid.
• December 5: Non-exempt federal employees will have worked two months 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.