Government Shutdown Update: Monday, October 13, 2025

Both the House and the Senate are out of session today. The Senate is scheduled to return tomorrow and hold a vote on the Republican-backed CR in the evening. The House is not expected to come back this week.

Senator Bernie Moreno (R-OH) has proposed eliminating the 60-vote threshold required for certain legislation to pass in the Senate. If implemented, this proposal would allow the Senate to pass the CR by a simple majority vote without the help of Democrats. However, Majority Leader John Thune has stated that he is opposed to changing the legislative filibuster and has not received pressure from the White House to do so.

The Affordable Care Act (ACA) Subsidies Explained

Throughout the shutdown, the Democrats’ main priority has been ensuring an extension to the ACA subsidies that are set to expire on December 31, while Republicans are concerned about increases to the deficit. If these subsidies expire, healthcare premiums are expected to more than double; however, if they are renewed, the deficit is set to increase by $349.8 billion over 10 years.

This is a national issue that needs to be addressed, either during the shutdown or after. Republicans are looking for a path forward in addressing these subsidy extensions without significantly increasing the deficit. Several proposals have been introduced to address this issue, including a yearly income cap, a minimum out-of-pocket payment to unlock eligibility, and an extension of the tax credits for current enrollees only. The most viable option seems to be reinstating a yearly income cap, as it is expected to receive bipartisan support. The current proposed income limit is $200,000.

We have prepared a separate analysis on the impact of ACA subsidies – see attached. Please reach out to GAPP with any further questions.

A Plan for Military Pay

Over the weekend, President Trump and Defense Secretary Pete Hegseth announced that the Pentagon would pay military service members during the shutdown, ensuring they would receive a paycheck on October 15. The Defense Department is tapping into $8 billion in unobligated research and development accounts from the previous fiscal year to pay troops. This funding is not tied to the $150 billion the Pentagon received under the most recent reconciliation package. President Trump is reportedly planning to pay the U.S. Coast Guard in addition to military troops using funds from the One Big Beautiful Bill. The Coast Guard sits within the Department of Homeland Security (DHS), not the Department of War. Some Democrats are calling the move “probably not legal.” Prior to the announcement, Chairman of the House Veterans’ Affairs Committee, Representative Mike Bost (R-IL), voiced his concern about the White House making such a decision without consulting Congress. Paying the troops alleviates one major impact of the shutdown, leaving less incentive to quickly resolve the lapse in funding.

Everyday Impacts

As the shutdown continues, some Americans are feeling the growing impact of the services that have been halted or minimized:

• TSA and Air Traffic Controllers are continuing to work without pay, as airports across the country are starting to see longer security lines and increasing flight delays.
• The National Flood Insurance Program lapsed on September 30, so it can no longer write new policies or renew existing ones. This is critical, as we are currently in the middle of hurricane season. Existing policies are unaffected until expiration.
• The Rural Housing Service within the Department of Agriculture, which operates small government-backed loan programs, has halted most operations.
• Key dates to note this week are Tuesday, October 14, when air traffic controllers are set to miss their first paycheck, and Wednesday, October 15, when the military is set to miss their first paycheck unless otherwise funded as discussed above. Federal employees are set to miss their first full paycheck on October 24.

Reductions in Force

On October 10, President Trump and Office of Management and Budget Director Russel Vought announced that agencies would have to implement reductions in force (RIFs) for programs that do not align with President Donald Trump’s priorities. The following are some of the details that have been released on those RIFs:

• 1,100-1,200 Department of Health and Human Services employees were laid off. Centers for Disease Control and Prevention employees have reported firings to the media.
• 176 DHS employees were laid off, including many from the Cybersecurity and Infrastructure Security Agency.
• 466 Department of Education employees were laid off.
• 442 Department of Housing and Urban Development employees were laid off.
• 1,446 Department of the Treasury employees were laid off.
• The Environmental Protection Agency’s Resources Conservation and Sustainability Division received an email indicating the agency would be seeing RIFs in the future. It is estimated that 20-30 EPA employees will be affected.

Past updates can be found on the DLA Piper website here.

If you have any questions or would like to coordinate an individual conversation about the shutdown’s effects or about the Government Affairs & Public Policy practice, please contact practice chair Karina Lynch at karina.lynch@us.dlapiper.com.