Work on the Hill
October was dominated by a deepening budget crisis, marked by the longest federal government shutdown since 2018. Beginning at midnight on the first of the month, the government entered a shutdown after Congress failed to pass appropriations legislation for the new fiscal year. The standoff reflected sharp partisan disagreements over spending levels, health care policy, and program riders including reforms to SNAP food assistance and the Affordable Care Act.
While the House passed a continuing resolution to temporarily fund government operations s, the Senate failed several times to advance the measure, leaving the federal government in limbo. As a result, roughly 1.4 million civilian federal employees were either furloughed or required to work without pay. Critical services and data releases have been disrupted, including key economic indicators from the Bureau of Labor Statistics, the Bureau of Economic Analysis, and the Census Bureau. Programs such as SNAP face funding shortfalls, threatening benefits for millions of Americans as the shutdown persists. Federal courts, national parks, and air traffic control operations were also strained, with some facilities have closed or operating at limited capacity.
Despite the funding crisis, the federal government did not shut down all operations this month. The Federal Reserve lowered its target range for the federal funds rate by a quarter percentage point, citing elevated inflation and moderate economic growth. The Cybersecurity and Infrastructure Security Agency issued directives requiring the mitigation of vulnerabilities in certain network devices, signaling ongoing federal attention to cyber risks. At the same time, the White House and congressional Republicans engaged in high-profile discussions about potentially abolishing or reforming the Senate filibuster to break the legislative deadlock, with calls from President Trump for a “nuclear option” to resolve the shutdown.
The prolonged funding impasse had broad economic and operational implications. Delayed pay for workers, suspended contracts, and interrupted programs have increasingly impacted companies and people across the country. The absence of timely economic data complicates decision-making, and public trust in federal institutions faces additional pressure as routine government functions become visibly impaired, heightening frustration among citizens and interest groups. Political stakes intensified as the stalemate continued, with growing pressure on both parties to negotiate a resolution ahead of upcoming state elections set for the beginning of November.
The federal government continues its negotiations, but the shutdown itself seems far from over. While certain agencies have continued limited or essential operations and some policy actions moved forward, the overarching narrative of the month was one of uncertainty, disrupted services, and mounting economic and political consequences. We enter November without a clear resolution to the impasse, leaving the government and the public navigating exacerbated challenges and uncertainty.
Engagement
This month, Lobbyit met with the offices of Sen. Ashley Moody (R-FL) and Sen. Tim Scott (R-SC) to discuss legislative action on short-term limited-duration insurance (STLDI).
Jake Chewbowski, a Legislative Assistant for Sen. Moody asked clarifying questions about the status of the Trump-era rules: while enforcement has been relaxed, he understood that the administration hasn’t expanded beyond the pandemic-era waiver. Jake strongly supports the effort to expand STLDI — seeing it as good politics for Republicans in the ACA conversation — and emphasized the importance of congressional intent, especially as the administration slow-walks rule enforcement. He indicated that Sen, Moody’s office doesn’t want to get ahead of the administration but is ready to help once there’s insight from the upcoming CMS meeting about direction and potential caps.
The team also spoke with Meghan McCully, a Legislative Assistant from Sen. Scott’s office. Meghan indicated that Sen. Scott has been focused on policies supporting independent workers — particularly the Modern Worker Empowerment Act — and is strongly pro-gig economy. With his roles on HELP and Finance, his office is closely following healthcare affordability, which ties into their interest in STLDI. Meghan said they welcome executive-branch action given difficulty legislating in this space. They remain supportive of the original Trump STLDI rule and are tracking Senate engagement. While there is appetite for healthcare affordability outcomes, she noted that the policy landscape quickly becomes complex and they would first defer to CMS on executive actions.
ACA Subsidy Debate Takes Center Stage
The ongoing federal government shutdown is deeply intertwined with the debate over whether to extend the enhanced Affordable Care Act (ACA) premium tax credits, making the issue of employer sponsored healthcare a prominent concern. The subsidies in question were expanded during the pandemic under the American Rescue Plan Act and then extended by the Inflation Reduction Act; they help individuals purchasing insurance through the ACA marketplaces afford premiums by capping household contributions and broadening eligibility.
If those enhanced subsidies expire at the end of 2025, estimates suggest that premiums for many marketplace enrollees will spike significantly, in some cases doubling, while millions could lose coverage altogether. For employers providing group health plans, this matters even if their primary coverage is not through the ACA marketplaces. Higher premiums and reduced coverage in the individual market may push more employees to rely on employer sponsored plans, raising cost pressures on employers. Also, disruptions in the insurance market could cause instability that ripples into group plan pricing, plan design decisions, and recruitment/retention strategies.
H.R. 5800 – SAFE Drivers Act Introduced
Introduced on October 21 by Rep. Pat Harrigan (R NC) and cosponsors, the bill would require all applicants for a commercial driver’s license (CDL) or CDL renewal to demonstrate English language proficiency as a condition for testing or issuance. Under the proposed legislation, an “English proficiency test” would be developed and approved by the Federal Motor Carrier Safety Administration (FMCSA) that assesses an individual’s ability to read road signs and safety instructions, understand and respond to spoken instructions and emergency communications, and write driver logs, reports and required documentation.
State departments of motor vehicles would be required to administer and verify the test for CDL issuance or renewal on or after the date of enactment of the act. The FMCSA would oversee test standards, provide guidance to states, and require annual reporting from states on applicant test numbers, pass rates and compliance. The act is designed to amend section 31308 of Title 49, United States Code, to add the proficiency requirement. If passed, it would represent a regulatory shift in commercial driver licensing focused on language proficiency rather than only other driving qualifications.
Brittany Panuccio Confirmed to EEOC
The Senate confirmed Brittany Panuccio to the Equal Employment Opportunity Commission (EEOC), giving the agency a quorum for the first time since Trump removed two Democratic commissioners earlier this year. Panuccio, a former federal prosecutor and Federalist Society member, is widely seen by conservative legal groups as advancing President Trump’s agenda to limit diversity, equity, and inclusion (DEI) initiatives in the workplace. Under acting Chair Andrea Lucas, the EEOC had already moved away from the decades-old disparate impact doctrine, criticized law firms for their DEI practices, and paused work on cases involving transgender employees, signaling a conservative shift from the Biden-era focus on expanding protections for pregnant and transgender workers and addressing online harassment.
Conservative advocates hope the EEOC will push back against DEI programs that they argue promote stereotyping or undue guilt based on race or history, rather than preventing discrimination. Panuccio’s confirmation is expected to allow the agency to advance Trump’s civil rights agenda more aggressively, while potential DEI-related lawsuits remain in the pipeline for fiscal year 2026. Analysts note that EEOC litigation filings have hit a ten-year low, partly due to the lack of a quorum, suggesting the agency may now reallocate resources toward future enforcement actions.
State Labor Laws In Motion
Several states have recently enacted or updated employment laws that will significantly impact employers. In California, Governor Gavin Newsom signed legislation covering a broad range of workplace issues, including wage theft, personnel records, equal pay, pay reporting, protections for victims of violence, paid family leave, reductions in force, and repayment agreements. These laws take effect soon and impose new compliance obligations on employers across the state.
Delaware passed a pay transparency law, H.B. 105, effective September 2027. Covered employers must include compensation and benefits information in job postings and, upon request, provide salary ranges and benefit descriptions to applicants before any offer or discussion of compensation. Employers are required to maintain related records for at least three years.
In Massachusetts, the Supreme Judicial Court ruled that retention bonuses intended to encourage employees to remain until a specific date are not considered wages under the Massachusetts Wage Act.
New York City is expanding safe and sick leave under Int. No. 0780-2024, effective February 2026, allowing additional unpaid sick time and incorporating paid parental leave. Proposed pay reporting legislation would require private employers with at least 200 employees to submit annual pay data to evaluate disparities based on gender, race, or ethnicity.
Philadelphia will implement amendments to its Fair Criminal Record Screening Standards Ordinance on January 6, 2026, updating employer obligations related to hiring and background checks.
National Employers Association