Eyes on Washington: Shutdown Briefing – Day 38

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

Approximately 800 flights have been canceled and about 500 are expected to be delayed today as the Federal Aviation Administration (FAA) reduces capacity in 40 key markets to address the shortage of air traffic controllers, which has been exacerbated by the shutdown. By next week, airlines will need to decrease their scheduled flights by 10 percent nationwide to keep up with Trump Administration guidelines.

As of today, November 7, non-exempt federal employees have worked one month without pay.

Status Update

Today marks Day 38 of the federal government shutdown. Negotiations around reopening the government are ongoing.

Congressional Activity

• Democratic Leadership: U.S. Senate Minority Leader Chuck Schumer (D-N.Y.) has proposed a legislative package to reopen the federal government and address rising healthcare costs. The plan includes passing a continuing resolution (CR), a one-year extension of Affordable Care Act (ACA) premium tax credits and a three-bill appropriations package, along with forming a bipartisan, bicameral committee to negotiate long-term healthcare reforms. The proposal aligns with Senate Majority Leader John Thune's (R-S.D.) preference to delay healthcare negotiations until after government funding is secured, but details remain to be worked out.
• Republican Leadership: Republicans recently pushed out a new offer to end the government shutdown. Senate Majority Leader Thune will not advance a rules change to eliminate the filibuster, meaning Democratic support is required to pass any funding legislation.
• Bipartisan Engagement: Bipartisan talks continue behind closed doors. The U.S. House of Representatives remains adjourned but was scheduled to hold a pro forma session this afternoon, and members will be given at least 48 hours to return before any votes will be called. There is growing consensus that to pass a CR, a deal must be achieved to move forward on three appropriations bills packaged in a "minibus": Agriculture-FDA, Military Construction-Veterans Affairs (VA) and Legislative Branch. The Senate is also in session today and is expected to hold a key procedural vote on a House-passed measure related to government funding; however, it is likely to fail to advance. This vote is part of ongoing efforts to end the government shutdown, which has entered its seventh week. Senate Majority Leader Thune said the upper chamber will likely work through the weekend.

Executive Branch Developments

• Presidential Engagement: President Trump is meeting with Hungarian Prime Minister Viktor Orbán today at the White House. They are expected to discuss trade and energy policy.
• Troop Pay: Even though service members were paid on October 31, U.S. Department of the Treasury Secretary Scott Bessent said it's doubtful that service members will receive pay on November 15 unless the shutdown ends.

Key Milestones

• November 7: The Low-Income Home Energy Assistance Program (LIHEAP), a major safety net that helps households cover energy costs, is likely to lose funding.
• November 15: Military payday.
• November 17: Senate staff are projected to miss their third full paycheck.
• November 28: House staff are expected to miss their second full paycheck. Members of Congress continue to be paid.
• December 5: Non-exempt federal employees will have worked two months 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.