November 10, 2025 | Capitol Hill Weekly
Washington National Tax Federal Legislative & Regulatory Services
Sign up for tax topics of interest
Receive timely, topic-specific content on Tax topics that interest you.
This update reflects facts as of Monday morning, November 10, 2025. The situation is fluid and may change.
It appears an agreement has been struck to end the government shutdown, at least temporarily. The Senate voted late Sunday night to proceed to consider legislation to fund the government through January 30, 2026. Eight Democrats voted with all but one Republican to provide the 60 votes needed to proceed, ending the filibuster.
A proposal by Senate Democratic leadership to extend the enhanced Affordable Care Act subsidies for one year was rejected by Republican leadership. The Republican leadership also rejected the President’s demand that Senate Republicans invoke the so-called “nuclear option” and change the Senate rules to allow passage of funding legislation by a simple majority.
Instead, an expanded bipartisan group reached an agreement to pass three appropriations bills, along with a continuation of funding at current levels of the remaining nine. The three appropriations bills—Agriculture/FDA, Military Construction/VA, and Legislative Branch—are relatively noncontroversial measures. Perhaps importantly, however, the Agriculture/FDA appropriations bill includes full fiscal year funding for the Supplemental Nutrition Assistance Program and the Women Infants and Children programs, removing those programs from future funding disputes through September 30, 2026.
As for the other nine appropriations bills, the agreement would continue funding at current levels, with some amendments, the details of which are a bit sketchy. First, layoffs that were implemented during the shutdown, about 4,000 of them, would be reversed, and no further layoffs would be permitted through January 30, the duration of the continuing resolution.
Secondly, furloughed government employees would be guaranteed back pay (the Administration has threatened withholding pay for nonessential workers).
Thirdly, Senate Republican leadership agreed to allow a vote on an extension of the expanded ACA subsidies before the second week of December. Senate passage is not at all assured, however, nor did the House Republican leadership agree to allow a vote. And, of course, any ACA funding measure is subject to possible Presidential veto. Failure to reach a bipartisan agreement on extension of the ACA subsidies would create a real possibility of another shutdown debate in January.
The Senate adjourned after the Sunday night cloture vote. It plans to vote on the measure sometime this week, with Senate passage now seemingly assured. House passage is not yet assured, however. House Minority Leader Jeffries announced his opposition to the agreement, so it is not clear how many House Democrats will vote for the measure. Republicans hold only a five-seat majority in the House, and the votes of almost all may be required for passage.
Nevertheless, there would seem now to be cause for optimism for an end to the government shutdown, at least through January. The question then will be whether early next year there will be a resumption of the debate over health care, funding for public broadcasting and international organizations, and executive branch rescissions that precipitated the current forty-plus day shutdown.
Dive into our thinking:
November 10, 2025 | Capitol Hill Weekly
Written by Washington National Tax Federal Legislative & Regulatory Services
Download PDFExplore more
Tax Policy Trifecta
Stay informed about potentially significant changes to the U.S. tax landscape in 2025 and beyond. You'll find resources below about proposed and enacted legislation that can help you follow the direction of tax developments in Washington.
Catching Up on Capitol Hill
Insights from KPMG professionals on what's happening in Washington that affects business taxation
Be ready for disruption - tax insights
Tax insights and analysis to help organizations respond with speed and confidence
Sign up for Tax topics of interest
Receive timely, topic-specific content on tax topics that interest you.
Meet our team