Government shutdown wrap-up and looking ahead: Top points

The United States government has officially reopened through a new continuing resolution (CR) and funding package, approved by the House and Senate and signed by President Donald Trump. This CR funds the government until January 30, 2026 and includes language that prevents federal reductions in force through that deadline.

Attached to the CR is a three-bill appropriations minibus covering the:

• Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act (S. 2256)
• Military Construction, Veterans Affairs, and Related Agencies Appropriations Act (part of H.R. 3944)
• Legislative Branch Appropriations Act (S. 2257)

Below, we provide an overview of the shutdown’s impact and key implications for healthcare.

Economic impact

White House Economic Adviser Kevin Hassett estimated that the shutdown resulted in:

• Approximately 60,000 job losses outside the federal workforce
• Economic costs of about USD15 billion per week, totaling USD92 billion
• A potential 1.5 percentage point reduction in fourth-quarter gross domestic product

The Supplemental Nutrition Assistance Program (SNAP) benefits were restored within hours of the shutdown ending, and air travel has returned to its standard operations.

Appropriations outlook

The three appropriation bills passed alongside the CR provide federal funding for the remainder of Fiscal Year 2026 (FY26) for SNAP, federal worker paychecks, and other agriculture and veterans’ programs. Nine additional appropriations bills remain outstanding in both the House and Senate. Republicans and Democrats have yet to agree on the top-line budget numbers for FY26, despite enacting three of the 12 spending bills.

Senate activity

Senate appropriators are working to advance a package that includes funding for the:

• Department of Defense Appropriations Act (S. 2572)
• Commerce, Justice, Science, and Related Agencies Appropriations Act (S. 2354)
• Interior, Environment, and Related Agencies Appropriations Act (S. 2431)
• Departments of Labor, Health and Human Services, and Education Appropriations Act (S. 2587)
• Transportation, Housing and Urban Development, and Related Agencies Appropriations Act (S. 2465)

Procedural hurdles may delay passage before the Thanksgiving recess, and negotiations to resolve differences with the House on these bills continue. House Republicans are expected to outline their FY26 appropriations strategy before November 21, 2025.

Implications for healthcare

ACA subsidies

The Affordable Care Act (ACA) subsidies are set to expire on December 31, 2025, which could result in significant increases in healthcare premiums for enrollees. House and Senate Democrats are continuing to push for an ACA subsidy extension, and Senate Majority Leader John Thune (R-SD) promised an ACA subsidy extension vote in mid-December as part of the shutdown deal. Speaker of the House Mike Johnson (R-LA) has not promised a vote on the House floor to extend ACA subsidies, but House Democratic leaders are preparing a discharge petition. House Democrats are proposing a three-year extension plan for the ACA subsidies.

Proposed changes to ACA tax credits

Some Republican Senators have proposed removing ACA tax credits and replacing them with contributions to health savings accounts (HSAs) to help individuals pay medical expenses directly. The plan requires ACA enrollees to switch to bronze-level ACA plans, which offer lower premiums and higher deductibles. The HSA would then assist with higher deductible costs.

Senator Bill Cassidy (R-LA) has been working to garner support for this proposal, which has gained the attention of President Trump. Representative Morgan Griffith (R-VA), Chair of the House Energy and Commerce Subcommittee on Health, has expressed opposition. Senator Thom Tillis (R-NC) and Senator Jeanne Shaheen (D-NH), among others, have also expressed concerns that there is not enough time to create a new healthcare plan. They have said the subsidies should be extended for a year while a new plan can be more carefully developed.

House negotiations

In the House, there have been bipartisan discussions pushing for a compromise. Several members from both parties have authored letters to Senate leadership requesting a meeting to work on an ACA compromise bill.

Representatives Don Bacon (R-NE), Jeff Hurd (R-CO), Josh Gottheimer (D-NJ), and Tom Suozzi (D-NY) jointly released bipartisan principles to extend and reform the ACA premium tax credits. The principles outline:

• A two-year extension of the tax credits
• An income cap phased out between USD200,000 and USD400,000
• Guardrails to prevent “ghost enrollees” and fraud

Representative Jennifer Kiggans (R-VA) introduced the Bipartisan Premium Tax Credit Extension Act (H.R. 5145), which would extend the ACA tax credits for one year. The bill has 28 co-sponsors, evenly split by party.

Looking ahead

As the political landscape continues to shift, DLA Piper’s Government Affairs and Public Policy (GAPP) team will continue to provide updates on the appropriations process and ACA negotiations, assessing FY26 funding, party priorities, and potential industry impacts.

The GAPP team will also cover the Senate Finance Committee hearing on November 19, which is set to examine the rising cost of healthcare, as well as potential solutions. This hearing may provide insight into bipartisan views about a healthcare compromise.

For more information, please contact the authors.