ADVOCACY & POLICY UPDATE - September 22, 2025

Shutdown Risk Grows After Senate Rejects Two CRs

Washington Update

Appropriations

On Friday, September 19, the Senate rejected both the Democratic proposal and the House-passed Republican proposal to avert a government shutdown. These votes are likely the last legislative action until close to the September 30 funding deadline, as lawmakers head into a weeklong recess. Senate Majority Leader John Thune (SD) signaled another vote on the GOP stopgap measure may occur when the Upper Chamber returns, but not before September 29. House Appropriations Chairman Tom Cole (OK) defended the GOP plan, arguing it met Democratic requests for a “clean” short-term extension into November.  Senate Appropriations Vice Chair Patty Murray (WA) maintained that preventing a shutdown requires Republican leaders to engage directly with Democrats. 

There are just 9 days remaining before federal funding expires and Congress remains divided over competing stopgap plans to avert an October 1 shutdown. The House Republicans’  91-page measure includes several White House requests, such as authority for Washington, D.C. to spend its full budget, flexibility to continue WIC nutrition assistance, and extensions of eased Medicare telehealth and hospital-at-home rules. It also authorizes federal interdiction of civilian drones and provides tens of millions of dollars for security across government branches, including $30 million to reimburse local police for protecting members of Congress. A separate pilot program allowing lawmakers to hire private security is set to expire this month, though leaders suggested funding could be reallocated to extend it.

Democrats advanced a competing proposal to fund the government through October 31. Their 68-page plan is narrower in length but broader in scope, seeking to extend enhanced Affordable Care Act subsidies, protect funding the administration has sought to rescind, and limit presidential rescission powers. Appropriators emphasized that the measure would also address broader healthcare priorities.

Both parties issued strong objections to the other’s approach. Democratic leaders argued Republicans had abandoned negotiations, while Republicans defended their package as responsive to urgent funding needs. Senate leaders acknowledged that bipartisan support will be required to pass any measure, given the 60-vote threshold. The House plans to vote on the GOP bill on Saturday, September 20, while Senate timing remains unclear, with outside events and holidays potentially delaying action until later next week.

Amid the stopgap fight, appropriators continued parallel work on longer-term spending bills. House Appropriations Chairman Tom Cole (OK) reported progress on full-year legislation for Agriculture-FDA, Military Construction-VA, and the Legislative Branch, with Military Construction-VA closest to agreement. Senate Appropriations Chair Susan Collins (ME) described early cross-party discussions as productive, and both chambers prepared to launch formal conference negotiations. Despite signs of progress on longer-term appropriations, Congress remains divided on the immediate question of how to keep the government funded past September 30. Republicans are pushing for a seven-week extension through November 21, while Democrats back a shorter October 31 patch tied to healthcare priorities, leaving a compromise still out of reach.

Click here to access the full text of the House Republicans CR.

Click here to access the section-by-section summary of the House GOP CR.

Click here to access the Democratic CR.

Department of Labor

Many U.S. Department of Labor (DOL) employees who accepted the federal government’s “Fork in the Road” deferred resignation offer are now returning to work after months of pay and benefits without working. A Department spokesperson said that roughly 100 DOL employees could be reinstated for “mission-critical” roles as agencies across the federal government call some displaced personnel back to work.

H-1B Visas

On Friday, September 19, President Donald Trump signed a Proclamation to restrict the entry of certain H-1B visa holders into the country. Over the weekend, the White House clarified that the new $100,000 fee for H-1B visa holders applies only to new applicants, not current holders traveling outside the U.S. Initially, the announcement caused confusion among companies and immigration lawyers due to ambiguity in the proclamation, compounded by conflicting statements from administration officials. On Saturday, September 20, U.S. Citizenship and Immigration Services (USCIS) and Customs and Border Protection issued additional guidance to address the uncertainty. 

Alongside the fee, the Department of Labor (DOL) launched a new enforcement initiative, Project Firewall, to increase oversight of employers using H-1B visas and ensure compliance with worker protection rules. Secretary of Labor Lori Chavez-DeRemer will be directly involved in decisions to initiate investigations.

Separately, Trump signed an order creating a “gold card” residency option with a reduced investment threshold of $1 million.

Click here to read the White House fact sheet on the Proclamation.

Click here to read the USCIS H-1B Visa FAQ on the Proclamation.

Click here to access the press release on Project Firewall.

Click here to read the fact sheet on the gold card program.

DOL Bureau of Labor Statistics

On Friday, September 19, the U.S. Department of Labor (DOL) Bureau of Labor Statistics (BLS) said it would temporarily delay the release of the 2024 consumer expenditures report, which was originally scheduled for Tuesday,

September 23. The BLS statement indicated it would be rescheduled to a later date but did not clarify what precipitated the decision. Last year’s annual update was also delayed from September 10 to September 24 due to an error BLS identified and needed additional time to remedy. 

Click here to access the BLS announcement.

Department of Education

U.S. Secretary of Education Linda McMahon is continuing to outline efforts to transfer responsibilities from the Department of Education to other federal agencies as part of the administration’s plan to eliminate the agency. The administration is considering moving oversight of special education to the Department of Health and Human Services (HHS), though advocates say congressional approval would be required. McMahon said the goal is to demonstrate that education programs could operate more efficiently under other agencies, while broader decisions on restructuring remain under review. One example already in place is the agreement to transfer career and technical education funding, adult literacy programs, and other initiatives from Education to the Department of Labor.