- The federal government has been shut down for three weeks, as Republicans and Democrats remain deadlocked over FY 2026 funding.
- Medicare, Medicaid, and CHIP claims will continue to be processed, while some HHS and FDA services will operate at reduced capacity.
- Funding for several key health programs expired on Sept. 30, including legislation supporting Medicare telehealth flexibilities.
- Extending subsidies for the Affordable Care Act (ACA) marketplace remains a major point of contention.
- While no resolution is in sight, STS will keep members informed of any progress toward a funding deal.
The federal government is entering its third week of a shutdown, as Republicans and Democrats remain unable to reach an agreement to fund government operations for FY 2026.
According to contingency plans from the Centers for Medicare & Medicaid Services (CMS), claim processing for Medicare, Medicaid, and the Children’s Health Insurance Program (CHIP) will continue during the shutdown.
Programs under the Department of Health and Human Services (HHS) that operate with user fees or mandatory funding – including many within CMS and the Food and Drug Administration (FDA) – will continue providing essential services, although some functions may operate with reduced staffing.
Other healthcare services will operate at reduced capacity during the shutdown. According to the HHS Contingency Staffing Plan, approximately 36% of Centers for Disease Control and Prevention staff, 25% of National Institutes of Health staff, and 86% of FDA staff will remain on the job.
Additionally, funding for several key health programs lapsed on Sept. 30, including legislation that provides telehealth flexibilities under Medicare. In the past, Congress has retroactively restored funding for these programs after a shutdown.
Unfortunately, there is no end in sight. Neither party has opened lines of communication with the other, and the White House has not stepped in to broker an agreement.
At the center of the disagreement – beyond the appropriations themselves – is the extension of subsidies for the Affordable Care Act (ACA) marketplace. Democrats want to extend the enhanced premium tax credits enacted during the COVID-19 pandemic. Time is a key factor in this disagreement: open enrollment for ACA plans begins in just a few weeks. Democrats argue that Congress should act now, while Republicans believe government spending must be addressed first and that there is still plenty of time to negotiate ACA credits before they expire in December.
STS is closely monitoring the shutdown and will continue to update members on any progress toward a funding agreement.