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American Financial Services Association

The Shutdown 

The Shutdown 

On Tuesday night the Senate failed to pass a continuing resolution, which would have kept the government funded for seven more weeks, leading to the federal government shutting down until a budget agreement is reached.

The Republican-drafted bill, which needed 60 votes to advance, failed 55-45. Notably 3 members of the Senate Democratic Caucus broke with party leadership to vote in favor of the bill, including Catherine Cortez Masto (D-NV), John Fetterman (D-PA), and Angus King (I-ME). Senator Rand Paul (R-KY) was the only Republican to vote against the measure, stating he did not want to prolong Biden-era funding levels. On Wednesday, the Senate rejected both Democrat and Republican drafted bills again with no movement towards an agreement.

Congress remains gridlocked over government funding as Democrats insist that any budget proposals include maintaining Affordable Care Act (ACA) premium tax credits. They hope to address this issue before open enrollment period this fall, but Republicans want to deal with this issue separately from the continuing resolution. The last time the government shutdown was in December 2018, and it lasted for a record 35 days. It remains to be seen how long it will take for Congress to come to an agreement, but AFSA will continue to monitor the situation as it develops.

October 2nd, 2025

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