Eyes on Washington: Shutdown Briefing – Day 29

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

Judge Susan Illston of the U.S. District Court for the Northern District of California on October 28 issued a preliminary injunction against the Office of Management and Budget's (OMB) decision to issue reduction in force (RIF) notices for workers at most major government agencies, saying that the RIFs would cause "irreparable harm" if allowed to continue during the government shutdown.

Status Update

Today marks Day 29 of the federal government shutdown. Negotiations on reopening the government remain stalled.

Congressional Activity

• Democratic Leadership: Remains unified in calling for a renewal of Affordable Care Act (ACA) subsidies. As November 1 approaches, Democrats are hoping that as Americans see the increased cost of their healthcare premiums, Republicans will be pressured to renew the subsidies.
• Republican Leadership: Continues to blame Democrats for the shutdown. Although several senators sought votes on "one-off" bills to fund parts of the government, Republican leadership so far seems to be holding the line against piecemeal legislation.
• Bipartisan Engagement: The U.S. Senate is holding votes on the National Petroleum Reserve in Alaska and a judicial confirmation. Though not currently scheduled, a vote on the "clean CR" (continuing resolution) is likely to be added. The House of Representatives continues to convene on a pro forma basis.

Executive Branch Developments

• Presidential Engagement: President Donald Trump continued his travels to Asia, stopping in Gyeongju, Republic of Korea (South Korea), on October 29 and speaking at the Asia-Pacific Economic Cooperation (APEC) CEO luncheon. The announcement that the U.S. and South Korea have come to a new agreement on trade has helped soothe fears of a wider regional trade war between the U.S. and East Asia. President Trump dismissed the latest round of North Korean missile tests and noted that he was optimistic for a "good outcome" from his upcoming summit with Chinese President Xi Jinping.
• Troop Pay: Vice President JD Vance confirmed to reporters that the Trump Administration has found a way to pay members of the military on October 31 but did not provide further details.
• SNAP and WIC Funding: U.S. Department of Agriculture Secretary Brooke Rollins told reporters that the administration does not have the legal authority to fund food aid programs during a government shutdown, the clearest sign yet that approximately 42 million Americans may go without Supplemental Nutrition Assistance Program (SNAP) benefits on November 1.

Key Milestones Ahead

• Today Through November: The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) is likely to experience funding shortfalls.
• October 31: House staff are confirmed to miss their paychecks, and Pentagon workers are expected to miss their paychecks. Members of Congress will continue to receive pay throughout the shutdown.
• November 1: The ACA open enrollment period begins. Participants may see premiums increase significantly. 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 4: Off-year gubernatorial elections are held in Virginia and New Jersey.
• 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.

Contact Us

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
Sara E. Peters
Dennis S. Potter
Elizabeth Leoty Craddock

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.