NASE News

A Month Into the Shutdown: Gridlock Deepens Over SNAP Funding and ACA Subsidies

The government shutdown continues into another week with no clear resolution in sight. October 31^st, is the 1-month mark of the shutdown. The Senate adjourned for the week yesterday and will not return until Monday, November 10, extending the government shutdown until at least its 34^th day, which would match the longest funding lapse in U.S. history.

On Sunday, November 2 after the Senate adjourned, President Trump, in a series of late night Truth Social posts, President Trump called on Republicans to “go for what is called the Nuclear Option -Get rid of the Filibuster, and get rid of it, NOW!” Many Republicans, including Majority Leader Thune oppose weakening the filibuster, in fear that it would backfire if Democrats regained control of the Senate.

The Senate failed to advance the House GOP-backed CR on October 28^th, marking the 13^th vote on the bill. The Senate also failed to advance a Republican backed appropriations package to pay federal employees and contractors who have worked through the shutdown without pay.

As the shutdown continues, more than 40 million Americans are at risk of losing access to the Supplemental Nutrition Assistance Program (SNAP), as the USDA confirmed on October 27^th that benefits would not be issued on November 1^st. A coalition of more than two dozen Democratic attorneys general and governors are suing the Trump Administration over the decision to suspend SNAP benefits during the shutdown. Administration officials say they are legally prohibited from extending the benefits by using emergency funds. Congress previously allocated $5.5 billion for an emergency fund which falls short of the $9 billion needed to cover the cost of SNAP benefits for November. Administration officials say recalculating benefits for partial payments would be logistically challenging and could take weeks. This means that SNAP recipients would still face delays in their next benefit, and would receive less than usual.

In addition to the shutdown, congressional leaders are confronting their worst-case scenario on FY26 funding: an unprecedented, full-year continuing resolution locked at Biden-era funding levels. Despite an impasse over reopening the government and ACA subsidies set to expire, some Senators have expressed cautious optimism around bipartisan long-term appropriations negotiations. Though, there have been no major developments, and Congress made little progress on the FY26 appropriations before the shutdown began. Not to mention, members of both parties have stalled progress in the weeks since. A year-long CR would be an incredibly difficult task for Speaker Johnson, would mean no earmarks, and would only succeed with buy-in from the White House.

Since the shutdown began, both sides have remained dug into their positions. Republicans are committed to passing a “clean” CR to fund the government through November 21, while Democrats are pushing to extend the ACA premium tax credits created in 2021. Republican leadership is open to negotiating the ACA tax credits, but not until after the government has reopened. Premium letters have already started landing in mailboxes, and open enrollment is set to begin on November 1,
adding the pressure on Congress to reopen the government and address the ACA subsidies. Deep divisions within the GOP — between those staunchly opposed to extending the subsidies and swing-state members open to compromise — have left leadership with little room to maneuver or strike a deal with Democrats seeking a permanent extension.

All of that to say, a clear resolution to the shutdown (and FY26 appropriations) is unclear. *This article was written prior to the news on Sunday, November 9th where a compromise was agreed to in the Senate.