Senate at an Impasse on Fiscal Year 2026; Federal Government in Partial Shutdown

Oct 7, 2025

The federal government continues to function under a partial shutdown after Congress failed to advance a short-term continuing resolution (CR) that would serve as a stopgap while debate continues on discretionary funding for Fiscal Year (FY) 2026. Typically, these impasses, where the minority party in the Senate seeks to use its limited leverage to advance its own priorities, result in a negotiated bill where a few concessions are made. However, at this writing, there continues to be no workable deal between Republicans and Democrats. House Speaker Johnson (R-LA) did indicate on Monday that he had met with Senate Appropriations Vice Chair Patty Murray (D-WA) to discuss bills moving successfully through conference committee “after the initial clean CR is passed.” This has been interpreted by the press to mean that Republicans are holding firm and will not make concessions in the pending deal to address healthcare and other issues on the Democrats’ priority list. Under the shutdown and in the short term, all mandatory programs such as social security, Medicaid, and Medicare, law enforcement activities, and other functions deemed essential by the Administration continue to operate. Federal aid for certain grants that are already underway and formula funds such as Title I and IDEA will continue to flow, but without federal agency staff available to troubleshoot any challenges that may arise. Every agency has a contingency plan in place for the shutdown. You can view the U.S. Department of Education’s plan and find other agency plans on their respective sites.

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