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Congress Home for the Holidays

After a busy week, Senators huddled on the floor Thursday night as they made an eleventh-hour attempt to find a path forward on bringing up a bundle of five bills or minibus for consideration before the end of 2025. No agreement to move forward was reached after Senators Michael Bennet and John Hickenlooper, both of Colorado, announced they would hold up the package after White House OMB director Russ Vought’s decision to dismantle the National Center for Atmospheric Research, which is based in Colorado.

 

The package under consideration in the Senate would fund the Departments of Defense, Education, Housing and Urban Development, Commerce (including NOAA), Health and Human Services (including NIH), Transportation, Labor and Interior, along with the EPA and NSF.

A few Republican Senators have held the bill from moving forward but released a hold after Senate leadership agreed to an amendment vote on stripping earmarks in the legislation. The Colorado hold is new to the OMB decision.

The Senate will resume consideration and negotiations in January.

 

 

The End is in Sight

The longest government shutdown in U.S. history is poised to end, with the House of Representatives scheduled to reconvene at approximately 4 p.m. Wednesday to vote on a funding bill passed by the Senate earlier this week.

The Senate measure advanced with the support of all Republican senators and a group of eight Democrats, a move that has sparked intense backlash from progressive activists and deepened divisions within the Democratic caucus. While the bipartisan support helped propel the bill forward procedurally, most Senate Democrats remain staunchly opposed to the package, citing concerns over spending priorities and the exclusion of key Democratic provisions.

In the House, the funding bill faces similar resistance from Democratic lawmakers. Despite this, Speaker Mike Johnson has expressed confidence that the measure will garner sufficient Republican support to pass, effectively ending the shutdown that has paralyzed federal operations for weeks.

The proposed legislation includes a short-term extension of funding for most federal agencies through January 30, 2026, providing a temporary reprieve while negotiations continue on broader appropriations. In addition to the stopgap funding, the package incorporates three full-year appropriations bills covering:

  • Military Construction and Veterans Affairs: Ensuring continued support for infrastructure projects and essential services for veterans.
  • Agriculture and the Food and Drug Administration (FDA): Funding critical programs related to food safety, rural development, and agricultural subsidies.
  • Legislative Branch Operations: Maintaining the functioning of Congress and its support agencies, including staff salaries and administrative services.

House Democrats are expected to introduce an amendment aimed at extending Affordable Care Act (ACA) tax credits for an additional three years—a provision that has broad support among the party’s base. However, the amendment is unlikely to pass given the Republican opposition.

Government Shutdown Nears Historic Milestone as Congressional Standoff Deepens

With no resolution in sight, the federal government is barreling toward a grim milestone: one full month of shutdown. If the impasse continues through November 4, it will become the longest government shutdown in U.S. history, eclipsing the 35-day closure during President Trump’s first term.

The deadlock stems from a bitter standoff between House Republicans and Senate Democrats over a stopgap spending bill passed by the House on September 19. Since then, the lower chamber has not held a single vote. Speaker Mike Johnson (R-LA), in a strategic move to pressure Senate Democrats, has kept the House in a “district work week” for four consecutive weeks—effectively sending lawmakers back to their home districts rather than convening in Washington.

Senate Democrats have blocked the House-passed spending bill a dozen times, citing concerns that it would gut healthcare subsidies and drive-up costs for millions of Americans. Republicans, meanwhile, argue that the bill is a necessary first step to keep the government open and that healthcare provisions can be negotiated separately.

The consequences of the shutdown are set to intensify in the coming days. More than 40 million Americans who rely on the Supplemental Nutrition Assistance Program (SNAP) face the expiration of their benefits on November 1. The Trump Administration has stated it will not use emergency funds to extend the program.

Meanwhile, millions of federal employees and active-duty military personnel are bracing for another missed paycheck. The National Federation of Federal Employees, the country’s largest federal worker union, issued a scathing statement this week, urging Congress to “immediately pass a funding bill and restore full pay to the public servants who keep this country running.”

The prolonged shutdown is taking a toll on both parties. A Gallup poll conducted in early October shows public frustration boiling over: Congressional approval has plummeted from 26% to just 15% in a matter of weeks. Analysts warn that the longer the shutdown drags on, the more political damage lawmakers on both sides of the aisle are likely to suffer.
Despite the growing pressure, leadership in both parties remains entrenched. Democrats continue to insist that the House bill is a “non-starter” due to its impact on healthcare, while Republicans maintain that the Senate’s refusal to negotiate is prolonging the crisis.

Vice President Vance will be on the Hill today to have lunch with congressional Republicans, and the issue of the shutdown is sure to dominate conversation. Despite growing concerns for both parties, there appears to be no end in sight.

 

OBBB Signed Into Law

President Donald Trump signed his “One Big, Beautiful Bill” into law during the July 4th picnic on the White House grounds, enacting a sweeping multitrillion-dollar legislative package that reflects the core of his policy agenda. The measure passed with near-unanimous Republican support in both chambers of Congress following months of negotiations and intense pressure from the president and GOP leadership.

The legislation extends Trump’s 2017 tax cuts and boosts funding for immigration enforcement and national defense. To balance the increased spending, the bill imposes substantial reductions to domestic programs, slashing Medicaid and food assistance by $1.2 trillion and cutting billions from federal higher education funding. According to estimates from the Congressional Budget Office, the bill will increase the national deficit by $3.3 trillion over the next decade and result in 11.8 million additional people losing health coverage.

Despite internal dissent and unanimous Democratic opposition, Trump succeeded in pushing the massive reconciliation bill through Congress in time for the July 4th deadline.

 

Senate Tax Package Update

Senate Finance Committee Chair Mike Crapo (R-Idaho) confirmed Tuesday that his panel will not formally review the GOP tax package recently released by the committee, opting instead to send it directly to the Senate floor as part of the GOP’s broader legislative effort. While Crapo maintains that this decision is unrelated to opposition within the committee, speculation suggests that Senator Ron Johnson (R-Wisconsin), a key swing vote and vocal critic, may have influenced the move.

The Senate package introduces an endowment tax hike for private institutions, though it is more modest than the House version. Additionally, it eliminates the proposed logo and licensing income tax included in the House’s provision.

The committee’s proposal also contains controversial Medicaid and debt ceiling provisions. One key Medicaid-related measure would gradually reduce most states’ ability to impose provider taxes on hospitals and other health care providers, capping the rate at 3.5% by 2031—down from the current 6% limit. However, this restriction would only apply to the 40 states and the District of Columbia that have expanded Medicaid for low-income adults.

For states that have not expanded Medicaid—primarily GOP-led—new provider tax rate increases would be restricted but would not face as drastic an impact. The Senate package also introduces stricter Medicaid work requirements, mandating that parents with children aged 15 and older engage in work, volunteer activities, school, or job training for at least 80 hours a month to maintain benefits. The House version had exempted parents of dependent children from this requirement.

Regarding the debt ceiling, the Senate committee proposes a $5 trillion increase, surpassing the House’s $4 trillion adjustment. This provision is designed to extend the timeframe for President Trump’s policy implementation, reducing the necessity for negotiations with Democrats over the cap.

If the committee’s proposal withstands scrutiny under the Senate Byrd Rule process, it will be incorporated into the “Big, Beautiful Bill” package, requiring only a simple majority to pass. GOP leaders aim to send the bill to President Trump by July 4, though some lawmakers have voiced concerns about the ambitious timeline.