With the government shutdown lasting more than three weeks with no end in sight because of the parties' dispute over whether to attach an extension of enhanced Affordable Care Act (ACA) premium tax credits to the continuing resolution (CR) — Democrats insist on it, Republicans refuse — members are now looking toward another bill to extend government funding beyond the November 21 end date of the current CR.

"This CR was set to November 21st. Was that a random date? No, that date was chosen by Republicans and Democrat appropriators — decided-upon to allow for seven additional weeks so they could finish the job that you just asked about," House Speaker Mike Johnson (R-LA) said October 21. "Right now, the great irony is the Democrats who say they want everything to be done, they are the ones that are eating up the clock. They're preventing that very thing from happening."

Semafor reported October 21: "Asked if the House should consider returning to Washington to pass a longer funding extension, Senate Majority Leader John Thune said, 'for sure,' adding: 'Every day that passes, we've got less time to fund the government.'" Politico Inside Congress reported that some conservative House Republicans are calling for a CR into 2026. Punchbowl News reported, "Senate Majority Leader John Thune told reporters that the House should consider coming back into session to pass a new CR with a later end-date." Additionally, Leader Thune said "that Congress may have no choice but to pass a one-year CR after the government opens up."

President Trump hosted Republican senators for a Rose Garden lunch on Tuesday and again asserted that he will only meet with Democratic leaders after they provide the votes to reopen the government. The President again highlighted Democratic programs being cut due to the shutdown. "Many of the things they're cutting, like the New York project — $20 billion, we're cutting it — they're not going to get it back. I mean, they're not going to get a lot of things back. They may not get it back. Maybe we'll talk to them about it," he said. "But they're losing all the things that they wanted … many of the things that they wanted are things that we don't want — things that are just so bad for our country. And we're cutting those things out."

The President implored members of the other party, "I'm calling on every Senate Democrat to stop the madness, to let our country get back. In the greatest moment in the history of our country, in terms of wealth, in terms of job creation, and in terms of investment coming in, these guys go on strike. It's really a shame. So, I'm asking them to be smart. It's not working."

An October 21 Politico story noted that there are no signs of a Senate "gang" to help break the impasse on government funding, of the type that have materialized to find solutions to legislative problems in the past. "Senators don't even agree on whether there are still bipartisan talks taking place at all, let alone on what it would take to break the stalemate. If they agree on anything, it's that they aren't a gang, and they aren't negotiating," the story said. "It's a stark shift from early 2018, when a Senate gang helped negotiate a deal to end a short shutdown during President Donald Trump's first term."

The ACA premium tax credits issue isn't strictly partisan. The Bipartisan Premium Tax Credit Extension Act, H.R. 5145, to extend the enhanced credits for one year, has 15 GOP cosponsors. The sponsor of the bill, Rep. Jen Kiggans (R-VA), led a new letter calling for action on the credits once the government is reopened.

Majority Leader Thune took a procedural step toward consideration of S.3012, the Shutdown Fairness Act, Senator Ron Johnson's (R-WI) bill "to appropriate funds for pay and allowances of excepted Federal employees for periods of work performed during a lapse in appropriations."

IRS - The Treasury Department and IRS on October 20 released proposed regulations (REG-109742-25) that would remove the domestic corporation look-through rule, which was finalized in 2024, for determining domestic control of a qualified investment entity (QIE). The proposed regulations would treat all domestic C corporations as non-look-through persons for purposes of IRC Section 897(h)(4)(B).

IRS Notice 2025-57 provides transitional guidance for returns relating to certain interest on specified passenger vehicle loans received in a trade or business from individuals that are required to be filed under new Section 6050AA as enacted by Section 70203 of the "One, Big, Beautiful Bill Act" (OBBBA). The Notice describes what information must be provided to individuals and penalty relief for the 2025 tax year.

An October 21 news release providing an update on shutdown operations said IRS operations are limited but "the underlying tax law remains in effect, and all taxpayers must continue to meet their tax obligations as normal." Additionally, "Tax refunds will generally not be paid during this period with one key exception. For taxpayers filing a Form 1040 … "

Trade — The Senate Appropriations Commerce, Justice, Science, and Related Agencies Subcommittee hearing, "A Review of the Activities and Fiscal Year 2026 Funding Priorities of the Office of the United States Trade Representative," with USTR Jamieson Greer set for Tuesday, October 21, was postponed, and a new date has not been announced.

On Monday, October 20, the Office of the U.S. Trade Representative (USTR) announced its determination under Section 301 of the Trade Act of 1974 that Nicaragua's acts, policies, and practices related to abuses of labor rights, abuses of human rights and fundamental freedoms, and dismantling of the rule of law are unreasonable and burden or restrict U.S. commerce and proposed a range of responsive actions. An EY Tax Alert has details.

Following on previous reporting that there is momentum behind extending the African Growth and Opportunity Act and the HOPE/HELP trade programs with Haiti, both of which expired September 30, Punchbowl News reported October 21, "Sen. Ron Wyden (D-Ore.) told us today that he's open to an extension of key trade programs that expired Sept. 30, but Wyden noted that adding changes into the mix would complicate the effort."