As you are likely aware, we are on Day 3 of a federal government shutdown, as Congress has failed to agree on extending fiscal year 2026 funding. On September 19, the House of Representatives passed a continuing resolution (CR) that extended funding until November 21. (The House then recessed for the Jewish High Holidays; they will return next week.) This bill failed to receive the required 60 votes for passage in the Senate. (Recall that there are 53 GOP-held seats in the Senate, 45 Democratic-held seats, and 2 independent, so anything requiring 60 votes needs support from Democratic Senators.) A Democratic alternative CR has also failed to receive 60 votes.

Democrats are requesting the extension of expiring enhanced health insurance tax credits for insurance purchased on the ACA exchanges. While these tax credits do not expire until December, open enrollment—when individuals choose health insurance for the next year—begins on November 1, so Democrats argue this issue needs to be addressed now.

During a shutdown, thousands of federal workers are furloughed and governmental services and support slows, and typically those workers return to work when the government re-opens. However, a memo released last week by the Office of Management and Budget (OMB) outlines that furloughed workers may be fired through reduction in force actions, or “RIFed.” OMB Director Vought has told GOP leaders that these layoffs will occur “very soon,” though many—even those in the Administration— argue that firing federal workers during a shutdown violates appropriations law, which prohibits incurring new expenses during a shutdown. (Some have concluded that prohibition could extend to severance payments that accompany reduction in force actions.)

Stay tuned.

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