The federal government shutdown has now entered its third week with no resolution in sight. The House has been out of session since late September, and Speaker Mike Johnson confirmed last Friday that lawmakers will not return this week. And, on Monday, reiterated that the House will “Return to legislative session as soon as the Democrats come to their senses and open the government.” Meanwhile, the Senate continues its push to pass a short-term Continuing Resolution (CR) to reopen the government, but progress remains elusive. Adding to the uncertainty, President Trump is leaving for a brief overseas trip to Israel and Egypt as part of the first phase of a U.S. brokered ceasefire plan in the Middle East – underscoring how divided attention in Washington complicates efforts to break the deadlock.

The Senate has already failed seven times to advance the House passed CR. Three Senators who caucus with Democrats – Angus King (I-ME), John Fetterman (D-PA), and Catherine Cortez Masto (D-NV) – have consistently supported the measure. However, Republican leadership remains five votes short of the 60 needed to overcome a filibuster.

At the heart of the stalemate is a dispute over expiring enhanced health insurance tax credits, a top priority for Democrats. They are also pushing to restore funding for public broadcasting and reverse $1 trillion in Medicaid cuts from the One Big Beautiful Bill.

The shutdown’s impact is widening. On Friday, the Trump administration confirmed that layoffs previously warned of are now underway, with seven agencies issuing reduction-in-force notices to more than 4,000 employees – though some notices at the CDC were mistakenly sent and later rescinded.

President Trump announced Saturday that he has directed Defense Secretary Pete Hegseth to “use all available funds to get our troops PAID,” ensuring military paychecks on Oct. 15. A Pentagon official said roughly $8 billion in prior-year funds have been identified to cover mid-month pay if the shutdown persists beyond that date.

The Oct. 15 deadline for military paychecks had been widely viewed as a potential offramp in the stalemate, increasing pressure on both parties to strike a deal and avoid service members missing their pay. Now that temporary funding has been secured, that leverage has eased somewhat. However, it remains unclear how long these prior-year funds can sustain military pay if the shutdown continues.

Democrats gained a small boost last week when Representative Marjorie Taylor Greene (R-GA), a conservative firebrand, signaled support for cutting a deal to prevent steep premium increases. Greene said that while she opposes the ACA, Republicans must act to avoid premiums paid by her adult children – and millions of other Americans – from doubling. Senator Jeanne Shaheen (D-NH) quickly amplified Greene’s comments in a social media post Thursday afternoon. However, as this issue goes to print, neither side shows any sign of compromise.

NEFI will continue to keep members informed as developments unfold.

There are no congressional hearings of interest scheduled for this week.