Shutdown Drags on as Both Sides Seek Leverage

The federal government remains in a shutdown with no clear progress toward a deal, as lawmakers continue to clash over an extension of the expiring enhanced Affordable Care Act (ACA) tax credits that are set to expire at the end of the year. The White House is continuing to place pressure on Senate Democrats to support the House-passed continuing resolution (CR) that would fund the government until Nov. 21, 2025. Late last week, the Office of Management and Budget (OMB) initiated a series of reductions-in-force (RIF) across various executive branch agencies, including at the Departments of Health and Human Services (HHS), Treasury, Commerce, and Housing and Urban Development (HUD). For their part, Democrats have maintained that the ACA premium tax credits must be extended for more than one year so that it does not create a similar policy “cliff” at the end of 2026 and weaken the underlying program. They have also sought to message against the House GOP’s decision not to bring lawmakers back in session during the shutdown, demanding standalone action on items such as keeping the military paid during the shutdown. However, these votes are not imminent as neither side appears willing to stand down right now.

The Senate was originally slated to be out of Washington this week for a state work period, but senators will instead return for legislative business tonight where an eighth vote to reopen the government will take place. Notably, Majority Leader John Thune (R-SD) will not provide Senate Democrats with the opportunity to vote on their own alternative to the seven-week CR as he did during the previous vote series. Meanwhile, House lawmakers are on track to stay out of Washington, D.C. this week in a move to try and keep the pressure on Senate Democrats to vote yes on their CR. However, some within the Republican conference, including Reps. Kevin Kiley (R-CA), Jen Kiggans (R-VA), and Marjorie Taylor Greene (R-GA), have started to openly question the strategy of staying out of session during the shutdown. Speaker Mike Johnson (R-LA) has consistently noted that lawmakers will be given 48-hours notice should they need to return to D.C.