Eyes on Washington: Shutdown Briefing – Day 20

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

This shutdown is now the third-longest funding lapse in U.S. history.  

On October 17, Office of Budget and Management Director Russ Vought announced that $11 billion in U.S. Army Corps of Engineers project funds would be paused. The paused "low priority projects" are in New York, San Francisco, Boston and Baltimore.  

Status Update  

Today marks Day 20 of the federal government shutdown. Negotiations on reopening the government remain stalled. 

Congressional Activity  

The U.S. Senate is expected to vote for the 11th time on the Republican-backed "clean CR" October 20 at 5:30 pm. 

Leadership Dynamics

• Democratic Leadership: Demanded Republican leadership negotiate Affordable Care Act (ACA) subsidies to end the shutdown. Sen. Bernie Sanders (I-Vt.) spoke out against Senate Republicans' refusal to negotiate with Democrats during an interview on "CBS Mornings." Sen. Mark Kelly (D-Ariz.) asserted that "we should be able to wrap this up this week" if Republicans negotiate.  
• Republican Leadership: Continues to blame Democrats for prolonging the shutdown. Senate Majority Leader John Thune (R-S.D.) introduced the Shutdown Fairness Act (S.3012) that would pay "excepted" federal employees and military service members. In response to "No Kings" protests on October 18, U.S. House of Representatives Speaker Mike Johnson (R-La.) stated that he hopes Democrats "come to their senses" after "protests and publicity stunts." He affirmed that he will bring the House back into session as soon as this week if the Senate passes the clean CR. Senate Republicans have been invited to the White House on October 21 for a lunch with President Donald Trump, where the president is expected to thank them for their unity during the shutdown and confirming nominees.  
• Bipartisan Engagement: With the House out of session and the Senate only convening on a pro-forma basis, new bipartisan efforts to open the government continue to stall.  

Executive Branch Developments  

• Presidential Engagement: On an October 19 segment of Fox News, President Trump condemned Democrats for their handling of the shutdown. White House economic advisor Kevin Hassett stated that the Trump Administration will use "stronger measures" to force Democrats to support ending the shutdown this week. Speaker Johnson will meet with President Trump at the White House today, October 20, to discuss the shutdown. 
• Federal Layoffs: The National Nuclear Security Administration (NNSA), U.S. Supreme Court and federal judiciary ran out of "carry over" funding and will have to curtail some operations. The NNSA will have to furlough 80 percent of its employees, the Supreme Court will be closed to the public but will continue to hear oral arguments and issue opinions, and the federal judiciary will maintain limited operations. 

Key Milestones Ahead  

• Late October through November: The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) may begin to experience funding shortfalls. Last week, the White House added funds from other programs indicated that it will use tariff revenue to temporarily sustain the WIC program, and the U.S. Department of Agriculture (USDA) said there is insufficient funding to cover all November Supplemental Nutritional Assistance Program (SNAP) benefits. Administration officials are exploring ways to continue WIC and SNAP nutrition benefits, including potentially using tariff revenues.
• October 20: Senate staff miss their first full paycheck as projected.  
• October 20: The Senate is scheduled to vote on the Republican continuing resolution (CR) at 5:30 p.m. EST. 
• October 24: Federal civilian workers 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. Pentagon workers likely will be paid again by the administration, using available balances in other accounts, as they were on October 15.
• November 1: The ACA open enrollment period begins. The House-passed CR does not include an extension of ACA tax credits, which are set to expire at the end of the year. 
• 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.  

Holland & Knight will continue to provide updates throughout the shutdown. For tailored guidance or strategic briefings, please contact one of our Public Policy & Regulation Group members below.

Todd Wooten
Dimitrios J. Karakitsos
Karl R. Koch
Dennis S. Potter
Elizabeth Leoty Craddock
Sara E. Peters

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.