Government Shutdown Averted – What Does This Mean for Us?

CTAC + Mar 19, 2025

By Brian W. Lindberg, C-TAC Senior Policy Advisor 

As you know, our leaders in Washington, DC, recently averted a government shutdown by passing a Continuing Resolution (CR) to fund the federal government before the March 14, 2025, deadline. Traditionally, a CR funds the government at the current fiscal year levels. This time, the CR passed by the Republican-controlled U.S. House of Representatives included some major changes to the funding levels: it cut about $13 billion from nondefense spending, cut $20 billion in funding for the Internal Revenue Service, cut $1 billion from the District of Columbia’s budget, and increased defense spending by $6 billion.

Since the House of Representatives adjourned and skipped town following its vote, the U.S. Senate was left with only two options: pass the bill as sent over by the House, or not pass it, resulting in a government shutdown. To pass the CR in the Senate, Republicans would need a few Democrats to vote with them. Many Democratic legislators did not want to advance the CR. But one, the minority leader of the Senate, Chuck Schumer (D-NY), did want to vote for the CR because, he said, although Trump and the Republicans were forcing Democrats to vote for a bad bill,  a government shutdown would hand even more power to Trump. In the end, eight Democratic senators joined Schumer in voting to advance the CR, ultimately leading to its passage.

The CR provides for the continued funding of the government (technically Fiscal Year 2025 which ends September 30, 2025) using FY 2024 figures with slight adjustments. Of importance for C-TAC’s members and constituency is the fact that the programs and services we need for serious illness care under the Older Americans Act (OAA) will continue. For example, nutrition and meals services, the State Health Insurance Program (SHIP), caregiving, and elder justice programs will continue, albeit under FY 2024 levels. As we know, without an increase to cover the rising costs of doing business, “level funding” translates into a decrease in available monies. Fortunately, the CR included an extension of the telehealth flexibility under Medicare, enabling Advanced Care Planning conversations to continue online and in audio-only (phone) formats.  As well, the bill extended the funding of the Medicare Improvements for Patients and Providers Act (MIPPA) which enables Area Agencies on Aging, SHIPs, and Aging and Disability Resource Centers to conduct outreach and enrollment activities for low-income Medicare beneficiaries.

The next steps for the federal budget involve the budget reconciliation process, where committees are currently working on implementation language for the budgets that the House and Senate passed a few weeks back. We will share more on this as they produce their legislative language, but one of the biggest threats is to the Medicaid program.

Also, the appropriations process begins anew with the Appropriations Committees in the House and Senate working on their FY 2026 funding bills.  FY 2026 begins on October 1, 2025.

Advocates will be needed to speak up in the coming months on:

  • Preventing cuts to Medicaid;
  • Supporting appropriations for aging services programs in the Committee on Appropriations for Labor, HHS, and Education; and
  • Advancing the reauthorization of the Older Americans Act.