October 3, 2025 | Vol. MMXXV | Issue 132
In this edition:
- Appropriations
- Department of Transportation
- Administration for Community Living
- Trump Administration and Drug Pricing
- New Legislation
- AUCD Materials
- Words to Know
Appropriations
On September 30 at midnight, and beginning October 1, the government entered a shutdown. This is because Congress did not approve a new government funding package for Fiscal Year 26 by September 30 (when the government funding year ends) or pass a Continuing Resolution (CR) to keep the government operating on current funding levels for a specified period. Both Republicans and Democrats in Congress introduced their own versions of a CR, both of which fund the government at the previous fiscal year’s spending levels with some changes to policy and new spending. The breakdown came because Congressional Democrats wanted a CR that would reverse the Medicaid cuts in H.R.1 (the “One Big Beautiful Bill Act” passed into law by Republicans through the reconciliation process) and permanently extend the Affordable Care Act (ACA) premium tax credits. There have been some Republicans open to extending the ACA tax credits, but not enough to strike a deal before the deadline. House Republicans’ CR—which would extend government funding through November 21—did not include those key healthcare pieces, and they refused to support the Democrats’ CR. There have been multiple failed votes in the House and Senate on both CRs, to no success.
There has been some collaboration between Republican Senators including Dan Sullivan (R-AK), Tommy Tuberville (R-AL), and Lisa Murkowski (R-AK), who are looking at extending the ACA subsidies.
Key Takeaways
Each party is trying to frame the shutdown as being the fault of the other. Republicans are claiming that Democrats should pass their proposed CR and that the healthcare subsidies should not be negotiated in this venue. Democrats claim that Republicans have refused to engage in any good faith negotiations and are again backing them into a corner with no choice but to shut down the government or cede to the President.
The Office of Management and Budget (OMB) has directed agencies to prepare mass firing plans for a potential government shutdown, as Republicans and Democrats in Congress remain at an impasse. Some programs will continue to operate during the government shutdown, including Social Security, Medicare, and a few others. The memo outlined a shutdown plan that goes beyond what typically has happened in the past—OMB told agencies to “identify programs, projects and activities where discretionary funding will lapse Oct. 1 and no alternative funding source is available. For those areas, OMB directed agencies to begin drafting [reduction in force] RIF plans that would go beyond standard furloughs, permanently eliminating jobs in programs not consistent with President Donald Trump’s priorities in the event of a shutdown.” The Executive branch has broad discretion in what they consider “essential” and which staff are furloughed. The President has threatened to make more staffing cuts at federal agencies and make cuts to benefits during the shutdown.
From this article from Disability Scoop: “The Education Department’s Office for Civil Rights, which has already faced significant pressure this year, will halt its investigations and advocates said that the Centers for Medicare and Medicaid Services is unlikely to approve state plan amendments and waivers, for example. Meanwhile, with hundreds of thousands of workers furloughed, getting assistance from the federal government will likely be a tall order.”
Democrats established enhanced Affordable Care Act tax credits under the American Rescue Plan, which increased enrollment in ACA Marketplaces. The enhanced provision made more people eligible for the tax credits and increased the amount of tax credits. The enhanced version will expire on December 31, and their expiration could result in millions more uninsured people and higher premiums. Learn more from KFF here.
Plain Language
On September 30 at midnight, the government shut down. This means that government departments and agencies are not working right now. There are some people in the government that are still working because they keep people safe. The government shut down because Congress did not pass a spending bill on time. The deadline was September 30. Congress needed to pass a government spending bill to make sure the government is funded in 2026, which is also called “appropriations.” Appropriations means money that is set aside by Congress for a particular use. The appropriations process happens once a year. Money is sometimes requested by the President’s Administration or by Congress for a specific use.
Congress was in the middle of its appropriations process for 2026 funding. The Senate and House Appropriations Committee passed some 2026 appropriations bills but they had not finished this process. This is why Members of Congress were going to pass a Continuing Resolution or a “CR.” A CR is a funding bill that makes sure the government has enough money for a few more months. Republicans and Democrats in Congress are blaming each other for not being able to fund the government and causing the shutdown. Republicans in the House of Representatives introduced a CR that Democrats in Congress didn't like. Democrats in the House and Senate introduced their own CR, which Republicans didn’t like. The Democrats’ bill does two things that would affect healthcare:
- It would stop the big cuts to Medicaid that are going to happen because of H.R.1, or the “One Big Beautiful Bill.”
- It would help people continue saving money on healthcare using something called “tax credits” – explained below.
With the government shut down, some departments won’t be able to do what they usually do to support people with disabilities. The Department of Education has an office that looks into reports of discrimination in special education for students with disabilities. Discrimination means treating someone badly because of who they are. This office in the Department of Education will probably have to pause the research they might be doing. The Centers for Medicare and Medicaid Services might have to wait to approve plans that states submit if they want to change their home and community-based services programs.
Many people are able to pay less for healthcare every month because of something called “tax credits.” A tax credit is an amount of money that people can save when they file their taxes. Usually, they are a reward from the federal government. For example, if the federal government wants more people to get health insurance, they might offer a tax credit to people who get health insurance. The Affordable Care Act has special tax credits that will end on December 31, 2025. Democrats want to make sure that people can still use these tax credits in the future so they can save money and afford healthcare. Their CR includes a piece that makes those tax credits last forever.
The Office of Management and Budget is a government agency that makes decisions about how the federal government works and how money is spent. The Office of Management and Budget told other government agencies that they should get ready to fire a lot of people who work for the government if Congress doesn’t pass a spending bill by the deadline. Usually during a government shutdown, people who work for the government might have to stop working and stop getting paid for a short amount of time. This time, the administration is saying that they might fire people and they won’t be able to come back.
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