Government Shutdown Grows More Likely as Funding Deadline Approaches

  • by AGD Washington Advocacy Representative
  • Sep 30, 2025
The federal government is currently operating under a continuing resolution (CR) passed in March 2025 that funds the government through September 30, 2025. Unless Congress passes an annual appropriations act or an interim continuing resolution by that date, the government will shut down on October 1.
 
On September 16, Republican Leadership released a short-term “clean” CR entitled, Continuing Appropriations and Extensions Act, 2026, to fund the government through November 21, 2025, at current spending levels. The package timeline aligned with a temporary extension of health care policies (“extenders”), including reauthorizing funding for community health centers, the National Health Service Corps, teaching health centers, and the Special Diabetes Programs, as well as continuing key Medicare policies. The White House is in full support of the short-term CR as proposed by Congressional Republicans.     
 
Separately, on September 17, Democratic Leadership released an alternative CR also entitled, Continuing Appropriations and Extensions and Other Matters Act, 2026, that would fund the government through October 31, 2025. The Democrats’ proposal also included the aforementioned health “extenders,” along with policies considered “non-negotiable” by their Republican colleagues, such as a permanent extension of the enhanced premium tax credits (EPTC) and a full repeal of the health care provisions within the One Big Beautiful Bill Act
 
Although the House narrowly passed the Republican-backed CR on September 19 (217-212), the Senate rejected both the Republican-backed CR (44-48) and Democrat-backed CR (47-45) that same day.
 
On September 29, President Trump met with House and Senate Republican and Democratic leadership. This bipartisan, bicameral meeting comes nearly a week after President Trump cancelled a meeting he had scheduled with Senate Minority Leader Schumer and House Minority Leader Jeffries. The Senate is scheduled to vote once more on the House-passed seven-week CR on Tuesday, September 30, thereby daring Senate Democrats to oppose the measure just hours before the shutdown begins. Barring a last-minute agreement or convincing eight Senate Democrats to vote with their Republican counterparts, a government shutdown will take effect at midnight on Tuesday. 
 
In the meantime, the Trump Administration has been preparing for a government shutdown. On September 24, the Office of Management and Budget (OMB) issued a memo directing federal agencies to prepare reduction in force (RIF) plans to fire federal workers if the government shuts down. OMB instructed agencies to identify discretionary programs, projects, and activities set to expire on October 1 that have no alternative funding source, and draft RIF plans that would go beyond standard furloughs. The OMB memo notes that the RIF plans will not be necessary if Congress successfully passes a CR. 
 
The Department of Health and Human Services (HHS) also released its Fiscal Year (FY) 2026 Contingency Staffing Plan for Operations in the Absence of Enacted Annual Appropriations. Specifically, HHS’ contingency plans will lead to retaining approximately 47,257 staff and furloughing 32,460 staff as of day two of a funding lapse, meaning that more than 59 percent of HHS employees will be retained and 41 percent will be furloughed. 
 
Impact on General Dentistry: A government shutdown would cause widespread harm, particularly for agencies and programs that depend on discretionary funding through annual appropriations acts. AGD continues to monitor the federal appropriations process and advocates for continued funding for health extenders that support oral health programs and the dental workforce. 

Capitol Connections Archives