Eyes On Washington: Shutdown Briefing – Day 14

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

U.S. Department of the Treasury Secretary Scott Bessent shared that his department was going to "prioritize payments" to soldiers. During the January 2023 shutdown, former Treasury Secretary Janet Yellen said that "Treasury systems have all been built to pay our bills when they're due and on time, and not to prioritize one form of spending over another." It is not clear whether the Treasury Department has the authority to redirect congressionally appropriated funds.

Status Update

Today marks Day 14 of the federal government shutdown. Negotiations on reopening the government remain stalled.

Congressional Activity

The U.S. House of Representatives is scheduled to reconvene on October 20 but continue to operate under the 48-hour rule.

On October 14, the U.S. Senate convened for a pro forma session. The House did not meet.

• Democratic Leadership: Remains confident in Democrats' negotiating position on healthcare and has said "every day gets better for us" as the shutdown continues. House Minority Leader Hakeem Jeffries (D-N.Y.) has summoned Democrats back to Washington for a caucus meeting on the evening of October 14 to strategize on the party's next steps.
• Republican Leadership: Is not confident that troop pay will be a priority in Congress.
• Bipartisan Engagement: With the House out of session and the Senate convening only on a pro forma basis, new bipartisan efforts to open the government have stalled.

Executive Branch Developments

• Presidential Engagement: President Donald Trump emphasized that he "could cut projects they (Democrats) wanted, favorite projects, and they'd be permanently cut," in an interview with the One America Network. His recent travel to Israel and Egypt has decreased his public commentary on the shutdown.
• Federal Layoffs: The reductions in force that began on October 10 at the direction of U.S. Office of Management and Budget Director Russell Vought ran into challenges over the weekend. By October 13, despite the federal holiday, about half of the 1,300 Centers for Disease Control and Prevention staff who had been relieved of their duties were back on the job.
• Travel: The Transportation Security Administration confirmed that 95 percent of its workforce will continue to work during the shutdown, assuaging some concerns that passengers would bear the brunt of delayed or canceled flights. It also noted that officers calling in sick has not significantly disrupted operations.

Key Milestones Ahead

• October 15: The president has indicated that funds have been identified to ensure U.S. service members are paid, and the administration intends to move forward with that plan. However, those payments could be at risk if the government shutdown remains unresolved or if the administration's funding approach fails.
• Mid-October: The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) may begin to experience funding shortfalls. The White House has indicated that it will use tariff revenue to temporarily sustain this program.
• October 18: Nationwide demonstrations under the "No Kings" banner are planned, with some Republican leaders suggesting that Democrats may face political pressure related to the protests.
• Late October: House leadership continues to engage with the White House on shaping a healthcare framework that President Trump could potentially support. Though a deal still appears to be a long way off, once a key catalyst emerges, negotiations are expected to accelerate quickly. That said, it's unlikely any major developments will occur this week.
• October 20: Senate staff are projected to miss their first full paycheck.
• October 31: House staff are expected to miss their paychecks. Members of Congress will continue to receive pay throughout the shutdown.
• November 7: Nonexempt 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.