Eyes on Washington: Shutdown Briefing – Day 9

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

It is being reported that Senate Republicans are preparing an offer of votes on the Affordable Care Act (ACA) credits – and perhaps other healthcare issues – in exchange for Democrat votes to reopen the government. Republican and Democratic senators have been quoted expressing cautious optimism about whether this could break the deadlock.

Status Update

Today marks Day 9 of the federal government shutdown. Negotiations remain ongoing, but a resolution has yet to be reached.

Congressional Activity

Today, the Senate failed for the seventh time to pass a government funding bill.

• Democratic Leadership: Has expressed openness to negotiations on both funding and healthcare priorities, emphasizing the importance of bipartisan dialogue.
• Republican Leadership: Has indicated that discussions on healthcare provisions, particularly ACA subsidies, should follow the reopening of the government.
• Bipartisan Engagement: Informal conversations are underway among senators from both parties, though these are focused on solving the healthcare issues, not necessarily reopening the government. House and Senate leaders are not engaging directly, though there have been conversations between House Speaker Mike Johnson (R-La.) and Sen. Patty Murray (D-Wash.) about the appropriations process through the rest of the year.

Executive Branch Developments

• Presidential Engagement: President Donald Trump held scheduled events but did not issue public statements on the shutdown.
• Federal Worker Pay: A draft White House memo suggested some furloughed employees may not receive back pay, contradicting existing federal guidance and statutory protections. The memo is widely viewed as a negotiating tool and is not expected to be implemented.
• Operational Concerns: Staffing shortages in the air traffic control system are beginning to affect smaller airports, with potential delays at major hubs anticipated. Similar disruptions in 2019 played a role in ending that shutdown.

Key Milestones Ahead

• October 10: Final September paycheck issued to federal employees.
• October 13: Senate recess may be canceled.
• October 15: U.S. service members expected to miss paychecks.
• Mid-October: The U.S. Department of Agriculture's Women, Infants, and Children (WIC) supplemental nutrition program may face funding shortfalls. The administration has indicated tariff revenue may be used to sustain operations.
• October 18: Nationwide demonstrations planned under the "No Kings" banner.
• October 20: Senate staff projected to miss full paychecks.
• October 31: House staff expected to miss paychecks.

Note: Members of Congress continue to receive pay during the shutdown.

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
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.