Virtual Certainty of a Federal Government Shutdown on October 1 Despite Bipartisan Senate Effort

Today (September 29), the Alliance released an updated version of its FDA Shutdown Tool Kit.  We will continue to update it on a regular basis until the threat of a shutdown has been eliminated 

This week’s Analysis and Commentary answers more Q&A on what happens during a federal government shutdown.  

Virtual Certainty of a Federal Government Shutdown on October 1 Despite Bipartisan Senate Effort. As of September 28, the Senate has started to advance a bipartisan Continuing Resolution (CR) that would: 1) last 6 weeks, 2) maintain government at FY 23 spending levels and 3) add partial funding of amounts needed for disaster aid and Ukraine. The Senate CR would be an amendment to the [House-passed] House FAA bill. Senate Majority Leader Chuck Schumer, D-N.Y. has filed cloture on this bill, including the CR amendment. The vote is expected to occur one hour after the Senate convenes on Saturday unless there is a unanimous consent agreement for an earlier vote before that time.

While the Senate—Democrats and Republicans alike–want to avoid a shutdown, there are some indications that smooth, immediate passage of a CR in the Senate is not in the cards. There is no unanimity on Ukraine assistance and ongoing discussion within Republican ranks as to how the Senate could modify their preferred position (e.g. by adding money for border and security funding) to increase the likelihood that House Speaker McCarthy can deliver House agreement on interim funding. 

House Continues to Have Difficulties Adopting a CR. The House is scheduled to take up HR 5525, the Continuing Appropriations and Border Security Enhancement Act, 2024, today.   Notably, it limits CR spending to the lower House total (this would require a little more than an 8% cut in programs other than defense and veterans). There are also border security and immigration reform legislation attached. 

It is uncertain if House Speaker McCarthy has the votes to pass the CR given that a group of House Republicans has said they won’t vote for that CR without additional spending cuts. 

The Speaker has not committed to putting a Senate-passed CR up for a vote. Given the broad differences between the House and Senate measures, resolving the differences and securing final House and Senate approval is unlikely before next week, ensuring at least a brief shutdown.

House Agriculture-FDA Appropriations Bill Fails 191-237. The FY 2024 Agriculture, Rural Development, Food and Drug Administration and Related Agencies Appropriations Bill late Thursday failed to gain House approval by a vote of 191-237.  Twenty-seven Republicans joined all Democrats in opposing the bill. Earlier this week the House adopted the rule for consideration of this bill and three other appropriation measures.  Included in the rule was an amendment proposed to be considered as adopted as part of the rule offered by Subcommittee Chairman Andy Harris. 

This amendment reduces the Food for Peace Program to $532.1 million and makes an across-the-board reduction of 14.155 percent on each amount of discretionary budget authority provided by the bill, including the FDA. Only the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) was excepted from this across-the-board reduction.  No other amendments materially impacting FDA funding levels were adopted.

The Senate has not taken further action on S. 2131, its version of the Agriculture/FDA bill.

FDA (and Other Federal Workers) Would Not Be Paid Until a Shutdown Ends. Retained employees (exempt and excepted) accrue pay while working during the federal government shutdown. However, they are not paid until it is over. Under legislation passed after the last long shutdown (2018-2019) furloughed employees will also receive their missed pay. While no one loses money in the end, it is a grave hardship for many employees not to have money coming in to pay their bills. 

FDA’s Broad Mission: Agency Has 2-Day Meeting on Artificial Wombs. FDA is reviewing questions raised by efforts to develop an artificial womb intended to improve survival rates for extremely premature infants. See an article highlighting the meeting here and the questions FDA posed to the panel here.

FDA Touts Innovation in Animal Biotechnology, Veterinary Products, Food for Animals Through New Comprehensive Agenda. First announced by Dr. Califf at our Alliance webinar, the Animal and Veterinary Innovation Agenda was released last week. The report details the objectives and supporting actions that the Center for Veterinary Medicine (CVM) will use to foster product development and implement smart, risk-based approaches to regulating modern animal and veterinary products. See the press release here.