The federal government formally shut down at midnight on October 1 following Senate Democrats’ decision to block a Republican proposal for a short-term Continuing Resolution (CR), which would have maintained federal funding at existing levels through November 21. The measure received a vote of 55-45, falling short of the 60 votes required to overcome the Senate filibuster. Earlier, Senate Republicans rejected Senate Democrats’ CR that included extensions of Obamacare premium subsidies and aimed to reverse significant Medicaid reductions from legislation enacted earlier this summer.
The threat of a government shutdown has been brewing since Congress left for August recess. On September 19, the U.S. House passed a CR by a 217-212 vote. The U.S. Senate subsequently blocked the measure in a 44-48 vote that fell well short of reaching the 60-vote threshold needed to overcome a filibuster.
It is unclear when the shutdown will end.
On October 9th, the Senate tried and failed to pass the CR for the seventh time since the shutdown began. Of note, three Senators, John Fetterman (D-Pa.), Catherine Cortez Masto (D-Nev.), and Angus King (I-Maine) broke with their Democratic colleagues to support the CR and avoid a shutdown in the latest Senate vote, while Sen. Rand Paul (R-Ky.) broke with Republicans to oppose the measure. Because Democrat Senators do not want to be the 60th and deciding vote, Senate Majority Leader Jon Thune (R-S.D.) will need roughly 10 Democrats to vote with all Republicans with the exception of Paul. Senate Minority Leader Chuck Schumer (D-N.Y.) and Thune are busy in the media making their policy case and attempting to woo their base and swing voters with strong arguments.
Schumer was lambasted by his left flank for allowing the government to stay funded back in March and is now under pressure not to cave to the GOP as the shutdown has now lasted a week and a half with no clear end in sight.
The government shutdown is expected to cause several disruptions for private employers, including late payments on contracts, disruptions to regulatory processes, and project delays.
There have been reports from IEC contractors that the federal E-Verify system was not functional for a portion of the shutdown but has since been restored on Oct. 7. Participating employers use the E-Verify system to compare employee information provided on the Form I-9 with records from the U.S. Department of Homeland Security and the Social Security Administration to confirm employment eligibility.
Ogletree Deakins’s James J. Plunkett has more details in this article, “What the Federal Government Shutdown Means for Employers.” For more information on the shutdown’s implications and what employers need to consider, join the firm’s upcoming webinar, which will be promoted here.
Additional Resources:
- How Government Contractors Should Prepare for and Deal With a Shutdown, Sept. 24, Bradley
- Possible 2025 Government Shutdown and Impact on Immigration-Related Agencies, Littler
- What a Government Shutdown Means for Employers: Many Agencies Will Sharply Curtail Operations, Delaying New and Pending Cases, Littler
- The Impact of a Federal Government Shutdown on OSHA, Littler
- Government shutdown draws closer as congressional leaders head to the White House, Sept. 29, Federal News Network
- Days away from a government shutdown, agencies’ contingency plans still unclear, Sept. 24, Federal News Network
- White House budget office tells agencies to draft mass firing plans ahead of potential shutdown, Sept. 24, Federal News Network