Eyes On Washington: Shutdown Briefing – Day 16

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

House Minority Leader Hakeem Jeffries (D-N.Y.) called on President Donald Trump to "reengage now" and meet with congressional leaders to resolve the shutdown. He claimed past shutdowns have ended after negotiations between leaders in the executive and legislative branches. The leaders of both chambers of Congress last met at the White House on September 29, two days before the shutdown began.

Status Update

Today marks Day 16 of the federal government shutdown. Negotiations on reopening the government remain stalled.

Congressional Activity

The House is still in recess after House Speaker Mike Johnson (R-La.) declared a "district work period" until October 19. As a result, no legislative business is being conducted. It remains to be seen if he decides to prolong this period.

The Senate failed to pass the Republican-backed "clean continuing resolution (CR)" for the 10th time in a vote of 51 to 45. No new Democrats joined Republicans in support of the legislation. Senators also failed in a vote of 51 to 45 to pass a long-term appropriations bill to fund the U.S. Department of Defense (DOD).

Leadership Dynamics

• Democratic Leadership: Maintains the stance that Republicans are at fault for the shutdown. In an interview on MSNBC, House Minority Leader Jeffries said Democrats want to see the shutdown come to an end, but they still want to negotiate extending Affordable Care Act (ACA) subsidies.
• Republican Leadership: The Senate is continuing to encourage Democrats to reopen the government. Senate Majority Leader John Thune (R-S.D.) revealed that he privately told Democratic leaders he is willing to hold a vote on extending ACA subsidies if they support the CR. Although Speaker Johnson said Senate Minority Leader Chuck Schumer (D-N.Y.) declined the offer, Schumer claimed Thune has not approached him about the deal.
• 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 continue to stall.

Executive Branch Developments

• Presidential Engagement: Despite encouragement by Senate Majority Leader Thune, Trump Administration officials have yet to move around funds to allow farmers to access Marketing Assistance Loans (MALs) during the shutdown. The lack of commitment comes after President Trump redirected $8 billion in DOD research and development funding to pay troops.
• Federal Layoffs: Layoffs are increasingly coming under fire by both sides of the aisle as courts seek to stop them. Some Democrats have shared that they want a commitment to reverse reductions in force as a condition for reopening the government, including U.S. Rep. Don Beyer (D-Va.). On the other hand, Sen. Mike Crapo (R-Idaho) is circulating a letter in the Senate to urge President Trump to reverse staffing cuts to the U.S. Department of the Treasury's Community Development Financial Institutions Fund.
• Travel: Some travel insurance companies have indicated they are seeing an uptick in travel insurance purchases during the shutdown. The Federal Aviation Administration (FAA) continues to report controller shortages in cities such as Nashville, Dallas and Newark, New Jersey.

Key Milestones Ahead

• Mid-October: The Special Supplemental Nutrition Program (SNAP) 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. Some states, such as Minnesota, have already shared that they are no longer able to process SNAP applications.
• Saturday, 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.
• Monday, October 20: Senate staff are projected to miss their first full paycheck. The House is also scheduled to return to session.
• Friday, October 31: House staff are expected to miss their paychecks. Members of Congress will continue to receive pay throughout the shutdown.
• Saturday, November 1: Open enrollment for 2026 ACA plans begins. Out-of-pocket premiums will rise next year if Congress does not extend subsidies.
• Tuesday, November 4: The shutdown will become the longest in history if ongoing by the end of the day.
• Friday, November 7: Non-exempt 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.