Republicans and Democrats both are projecting that they feel justified in their positions regarding the federal government shutdown and are calling on the other side to relent in reopening the government. President Trump is using the shutdown to withhold funding from blue states, and the Administration is increasingly suggesting it will take the shutdown opportunity to cut federal jobs. And so, the shutdown continues without an end in sight, though some moderate members are working to try to bridge differences on an extension of enhanced Affordable Care Act (ACA) premium tax credits that expire at the end of 2025.

House Republicans were out of session last week, punctuating the fact that their continuing resolution (CR, H.R. 5371) to patch funding until November 21 was the Senate's only alternative to a government shutdown. The House now intends to remain out of session this week and possibly until Democrats accede to reopening the government, per communications to members from House Speaker Mike Johnson (R-LA). The soonest they are currently slated to return is October 14. Press reports have suggested that the middle of October could pose an action-forcing deadline on the shutdown because, if it lasts beyond then, active-duty military members could miss their next paycheck.

The House-passed CR failed to get the required 60 Senate votes last week, with the latest vote, on Friday, at 54-44. Three Democratic members lent their support to the measure. Some Republicans put the shutdown ending focus on five more Democrats flipping their votes to "yes," but there are no indications that such a change is imminent.

Congressional leaders appeared on the Sunday political talk shows:

• On NBC's Meet the Press, House Democratic Leader Hakeem Jeffries (D-NY) said, "As Democrats, our view is that we will find bipartisan common ground with our Republican colleagues to reopen the government, to actually pass a spending bill that meets the needs of the American people, but we have to decisively address this Republican health care crisis that is devastating hard-working American taxpayers."
• On the same program, House Speaker Mike Johnson (R-LA) said, "The healthcare provisions, some of these Obamacare subsidies that expire December 31st. He is looking over entirely the fact that we have to keep the government open in order to have those bipartisan debates and discussions that he just referenced."
• On CBS' Face the Nation, Senate Democratic leader Chuck Schumer (D-NY) said of the ACA credits, Speaker Johnson "has not committed to any extension and he won't until the American people force him to … the crisis doesn't start in January — two days ago, starting October 1st, millions of Americans are getting notices that their health care premiums are dramatically increasing."
• On Fox Sunday Morning Futures, Senate Majority Leader John Thune (R-SD) said, "Right now, we're at a stalemate. They have now voted four times. We give them the opportunity, a clean, nonpartisan, short-term funding resolution that continues government funding for the next seven weeks, and on four occasions now they voted against it. So, they will get another chance on Monday to vote again, and I'm hoping that some of them have a change of heart."

Republicans oppose addressing the ACA premium tax credits in the CR currently before Congress, but there is still the sense that the party will face pressure to act on the issue. A story in the October 3 Wall Street Journal said, "aides are discussing proposals to extend the enhanced subsidies for Affordable Care Act health-insurance plans … Trump hasn't yet decided whether he will endorse such a proposal." Politico also reported this morning that the White House is drafting proposals to address the credits and, "One includes grandfathering current beneficiaries and cutting off boosted subsidies for new enrollees."

Schedule — The Senate is back in session today (October 6) and at 5:30 p.m. will hold more votes on the Democratic alternative CR (S. 2882) to extend funding through the end of October and extend enhanced ACA premium tax credits, and the House-passed GOP CR (H.R. 5371). Absent late-breaking developments, these votes would be expected to fail. Three Democratic votes — Democrats Catherine Cortez Masto (D-NV) and John Fetterman (D-PA) and Independent Senator Angus King (I-ME) — have been provided for previous votes, and attention will be on whether there are any Democratic additions.

On Wednesday, October 8, the Senate Finance Committee plans to vote on Treasury nominations for Donald Korb to be IRS Chief Counsel, Derek Theurer to be Deputy Under Secretary of the Treasury for Legislative Affairs, and Jonathan Greenstein to be a Deputy Under Secretary of the Treasury.

Trade — Canadian Prime Minister Mark Carney announced that he will travel to Washington on October 6, ahead of a working visit and meeting with President Trump on October 7. A release noted that "Canada and the U.S. each launched consultations last month that will inform preparations for the first joint review of [USMCA]. The Prime Minister's working visit will focus on shared priorities in a new economic and security relationship between Canada and the U.S."

There has long been speculation about a potential year-end package addressing expiring tax, health and trade items, though it would likely require a bipartisan appropriations bill as the vehicle, and those prospects are up in the air with the shutdown. Punchbowl News reported October 5 that there is momentum behind extending the African Growth and Opportunity Act (AGOA) and the HOPE/HELP trade programs with Haiti, both of which expired September 30. "House Republicans have been working to be ready when the opportunity arises, and there's Senate support for acting too," the report said, adding that the White House supports a one-year extension of AGOA and the Haiti measure would probably be paired with it.

Bills introduced on the programs include:

• Senator John Neely Kennedy (R-LA) September 30 introduced S. 2958, to extend AGOA, and to require a full review of the bilateral relationship between the United States and South Africa
• Ways and Means member Greg Murphy, M.D. (R-NC) February 26 introduced H.R. 1625, the HELP Extension Act, bipartisan legislation to extend the HOPE/HELP trade programs with Haiti for 10 years
• Senate Finance Committee member Bill Cassidy (R-LA) February 26 introduced S.742, the Haiti Economic Lift Program Extension Act of 2025, to extend trade benefits for apparel products produced in Haiti from 2025 to 2035