Negotiations Continue, Agencies Release Shutdown Directives, and the Executive Branch Retaliates
The federal government officially shut down at 12:01 a.m. Wednesday, October 1, following the Senate’s failure to pass the House-approved continuing resolution (CR) [217 - 212]. The House remains in recess, leaving the Senate as the only chamber currently in session and capable of taking action to reopen the government.
Friday morning, the Senate failed for the fourth time to advance the House’s stopgap funding bill, extending the stalemate into the weekend. Procedurally, reopening the government will require Senate passage of the House measure or an agreement on a new funding vehicle that can clear both chambers once the House returns.
The Senate will reconvene Monday at 3pm with the next vote on the pair of CRs scheduled at 5:30pm. The House announced Friday that they would not return to session this week. There is some wiggle room in the schedule, though, if senators strike a deal that requires the House to return to Washington and pass a compromise. Leaders said they will give at least 48 hours notice before calling members back, according to sources on the call.
In a letter sent to House Democrats Saturday evening, House Minority Leader Hakeem Jeffries (D-N.Y.) announced a virtual meeting on Monday at 6PM EST. Jefferies also said Friday that he would plan to bring his caucus back to Washington this week.
Agency Directives
Most federal agencies have now issued guidance outlining their plans for the potential government shutdown. Many have activated contingency plans designed to sustain minimal, essential operations during a lapse in appropriations. A collection include:
Political Landscape and Negotiations
On Capitol Hill, a bipartisan group of senators has been conducting exploratory talks to identify a potential compromise to end the shutdown. But while those conversations are ongoing, enough Democrats haven't been ready to break ranks with party leadership to support the House-passed stopgap bill. Notably, no one from leadership is part of this group.
There has been lots of “spitballing,” Sen. Ruben Gallego (D-Ariz.), who was part of the floor huddle, told reporters Thursday. The goal is to provide some “room” to discuss a “Plan B” that some Democrats are seeking, he added. Another member of the group, Sen. John Hoeven (R-N.D) said, “I think we’re better off to pass the CR to the 21st and get back to work on appropriations bills,” shortly after he huddled with Sen. Jeanne Shaheen (D-N.H.) off the floor. Shaheen has emerged as a central player in bipartisan back channeling that ramped up at the end of the week. Shaheen has gained credibility in her prior involvement with other bipartisan negotiations, including ending the 2018 shutdown
Lawmakers are debating shortening the duration of the CR from the seven-week measure passed by the House (which funds the government through November 21) to a shorter-term stopgap. Democrats are also seeking assurances or a framework to negotiate an extension of Affordable Care Act (ACA) premium subsidies, which expire December 31. They say failure to extend could result in premiums skyrocketing an estimated 114%. Another Democratic condition: assurances that President Trump won’t backtrack on the deal once the government reopens Republicans remain divided on whether such discussions should occur before or after government funding is restored.
Executive Branch Retaliation
During a Wednesday conference call with House Republicans OMB Director Russ Vought reiterated that the Administration would begin firing federal employees within one to two days, according to two GOP sources on the call.
Vought had previously issued a memo instructing federal agencies to prepare Reduction in Force (RIF) notices for all employees working in programs, projects, or activities whose funding lapsed on October 1 and are “not consistent with the President’s priorities.” The memo did not specify how many employees might be affected.
On Wednesday afternoon, Vought issued an update on X, “Nearly $8 billion in Green New Scam funding to fuel the Left's climate agenda is being cancelled… The projects are in the following states: CA, CO, CT, DE, HI, IL, MD, MA, MN, NH, NJ, NM, NY, OR, VT, WA.” All those states are led by Democrats.
Constitution Partners will continue to monitor developments closely and provide updates as agency guidance evolves or congressional negotiations advance.