Congressional Update

Congress is facing mounting pressure to end the government shutdown, with little tangible progress toward reopening.

Democrats insist that any funding bill include an extension of expiring Affordable Care Act (ACA) premium tax credits, calling it a non-negotiable step to avert a “healthcare crisis.” Republicans counter that negotiations should resume only after the government reopens, with the House remaining in recess to increase pressure on Senate Democrats. The effects of the shutdown continue to spread – roughly 750,000 federal employees are furloughed, while others such as air traffic controllers and TSA officers are working without pay, prompting reports of staffing shortages and operational strain. Controversy arose over an Office of Management and Budget memo suggesting furloughed workers might not receive back pay. Congressional leaders from both parties swiftly rejected that interpretation, reaffirming legal guarantees of compensation. However, Congress has yet to present a unified front on whether the military will receive pay if the government is still shutdown on October 15.

While Speaker Johnson is steadfast on keeping House Republicans out of DC until the government reopens, the Senate has moved on a few matters unrelated to government funding. This week, Senate Democrats recently failed for a second time this year to end President Donald Trump’s national energy emergency. Sponsored by Senators Tim Kaine (D-Va.) and Martin Heinrich (D-N.M.), the measure sought to end what Democrats characterize as an abuse of emergency powers benefiting the fossil-fuel sector. Democrats cited rising energy costs and the cancellation or delay of clean energy projects as proof that Trump’s stance hurts American consumers. The emergency allows federal agencies to fast-track approvals for domestic energy and infrastructure projects aligned with the Administration’s priorities. While such emergencies expire after one year unless renewed, Congress is required to review them every six months.

With an ongoing standoff on Capitol Hill continuing, the Trump Administration is grappling with funding shortfalls for numerous agriculture and food programs. This week, President Trump postponed announcing billions in farm trade relief, citing the shutdown as the cause of delay. The package, intended to offset economic harm from the Trade War and China’s suspension of U.S. soybean purchases, was expected to total roughly $14 billion. However, only about $4 billion remains in the regular payment account, prompting USDA to seek an additional $12–13 billion from internal funds. The delay underscores the Administration’s continued focus on agricultural support, particularly for biofuel producers. Upcoming regulatory decisions, such as the 2026–27 Renewable Volume Obligations (RVOs) and reallocation rules, are expected to reflect that priority. President Trump is anticipated to raise the issue of soybean exports directly with President Xi Jinping during their planned meeting at the Asia-Pacific Economic Cooperation forum later this month.