Each week while Congress is in session, our Policy team delivers a key update to highlight a topical benefits, health, or retirement news item from the Hill, such as a newly introduced bill, a summary of a committee hearing, or another hot-button matter.
Lawmakers remain at an impasse over legislation to reopen and fund much of the federal government. On October 9, the Senate for the seventh time failed to pass a short-term funding extension. The House has been in recess since September 19, and Speaker Johnson (R-LA) is keeping the House in “indefinite” recess until the Senate passes funding legislation.
Republicans continue to insist on a clean continuing resolution to fund the government through November 21 at 2025 levels. However, Democrats are insisting on a repeal of certain Medicaid spending reductions contained in the One Big Beautiful Bill Act (e.g., work requirements) and an extension of the enhanced Advance Premium Tax Credit (“APTC”), which subsidizes individual insurance policies purchased on an exchange. The enhanced APTC is set to expire at the end of the year.
Impacts to the agencies are as follows:
- IRS: On October 8, the IRS began furloughing staff and closing most IRS operations due to the lapse in appropriations, according to a message on the website and a letter to employees from the acting IRS Human Capital Officer. Previously, the Treasury/IRS shutdown plan had said that normal IRS operations would continue for five business days, until at least October 7, using Inflation Reduction Act of 2022 funding, and that all 74,299 IRS employees would be retained during this period.
- DOL: DOL’s shutdown operations plan calls for furloughing approximately 90% of its staff. Staff that remain will primarily focus on tasks funded by resources other than the annual appropriations.
- SEC: The SEC’s shutdown plan calls for furloughing nearly all employees, approximately 4,000, and keeping only those needed for law enforcement activities. The agency’s electronic filing system is still online, but SEC staff will generally not be reviewing filings or approving applications.
