Congress is barreling towards the first full-government shutdown in roughly seven years as existing levels of government funding expire at midnight, Sept. 30.

 

On Sept. 19, prior to breaking for a week-long recess, the Senate failed to advance a House-passed short-term continuing resolution (CR) (H.R. 5371) that would fund the government through Nov. 21. The Senate voted 44-48, failing to clear the chamber’s 60-vote threshold for passage.

 

The House advanced the measure earlier in the day by a 217-212 vote; Republican Reps. Thomas Massie (R-KY) and Victoria Spartz (R-IN) voted against the bill, and Rep. Jared Golden (D-ME) was the only Democrat to vote for the measure. The Senate also failed to advance a CR (S. 2882) backed by congressional Democrats. Senate Appropriations Committee Ranking Member Patty Murray (D-WA) and House Appropriations Committee Ranking Member Rosa DeLauro (D-CT) introduced the measure; it would extend government funding through Oct. 31, permanently extend the Affordable Care Act’s (ACA) enhanced Advance Premium Tax Credits (eAPTCs) that are set to expire at year-end and repeal the Medicaid provisions in the One Big Beautiful Bill Act (OBBBA) (H.R.1). The Senate voted against the measure, 47-45. Democrats remain united in their opposition to a clean CR and insist on a CR that, at a minimum, extends the ACA credits and ideally also restricts President Trump’s ability to rescind congressionally appropriated spending and repeals the Medicaid provisions included in H.R.1. Republican leadership is opposed to including ACA extensions in a short-term CR, though Senate Majority Leader John Thune (R-SD) is willing to negotiate their potential inclusion in a later package.

On Sept. 29, President Trump met with the Big Four congressional leaders—Senate Majority Leader Thune, Senate Minority Leader Chuck Schumer (D-NY), Speaker Mike Johnson (R-LA) and House Minority Leader Hakeem Jeffries (D-NY)—to discuss options to keep the government open. The meeting was a shift from last week when the president canceled plans to host Democratic leadership at the White House, but the conversation was ultimately unproductive, further increasing the likelihood of a government shutdown.

Each party blames the other for the impending shutdown, and the federal government is bracing for the expected impacts. On Sept. 24, the Office of Management and Budget (OMB) released a memo, directing federal agencies to consider Reduction in Force (RIF) notices for all employees in programs, projects or activities (PPAs) that satisfy the following conditions: (1) discretionary funding lapses on Oct. 1, 2025; (2) another source of funding, including H.R. 1 is not currently available; and (3) the PPA is not consistent with President Trump’s priorities. The memo also asserted that “federal programs whose funding would lapse and which are otherwise unfunded … are no longer statutorily required to be carried out.”

 

Click here to read more about how the shutdown would affect different areas and future outlook.

Federal Agencies Prepare Plans for Shutdown

About Brownstein Hyatt Farber Schreck
Brownstein Hyatt Farber Schreck is a unique law firm. Walk into any of our offices and you’ll immediately recognize a different type of energy. Complacency doesn’t have a place here. Flexibility and inspiration do. Our culture and enthusiasm allow our attorneys, policy consultants and legal staff to stay ahead of our clients’ needs and provide them with the resources they require to meet their business objectives.

We hope you've enjoyed this article. While you're here, we have a small favor to ask...

As we prepare for what promises to be a pivotal year for America, we're asking you to consider becoming a member.

The need for fact-based reporting of issues important to family owned businesses and protecting a lifetime of savings has never been greater. Now more than ever, successful families and family owned businesses are under fire. That's why Family Enterprise USA is passionately working to increase the awareness of issues important to family owned businesses built on hard work, while continuing to strengthen our presence on Capitol Hill. The issues we fight for or against with Congress in Washington DC include high income tax rates, possible elimination of valuation discounts, increase in capital gains tax, enactment of a wealth tax, and the continued burden of the gift tax, estate tax and generation skipping tax.


Family Enterprise USA promotes generationally owned family business creation, growth, viability, and sustainability by advocating for family businesses and their lifetime of savings with Congress in Washington DC.  Since 2007, Family Enterprise USA has represented and celebrated all sizes, professions and industries of family-owned enterprises and multi-generational employers. It is a bi-partisan 501.c3 organization. Family foundations can donate.


#incometax #CapitalGainsTax #R&DExpensing #DontPunishSuccess #GrantorTrusts #StepUpinBasis #likeKindExchanges #AcceleratedDepreciation #EstateTax #Deathtax #wealthtax #taxLegislation #CongressionalCaucus #incometaxrates #repealestatetax #AdvocatingForFamilyBusinesses #FamilyOwnedBusiness #WomenOwnedBusiness @FamilyEnterpriseUSA #FamilyEnterpriseUSA