Overview

• An Oct. 1 lapse looms after the Senate rejected both parties’ short-term funding plans and party leaders entrenched their positions heading into the final days.
• OMB instructed agencies to prepare Reduction-in-Force notices tied to programs lacking funding or at odds with administration priorities, a step Democrats call intimidation and some Republicans criticize.
• Republicans push a clean continuing resolution, while Democrats seek to extend Affordable Care Act premium tax credits, reverse recent Medicaid cuts, and curb executive rescissions authority.
• President Trump canceled talks with Democratic leaders this week as the House and many lawmakers left town, and the House is not scheduled to reconvene until Oct. 1.
• Shutdown odds jumped on betting markets to roughly two-thirds, and a lapse could furlough or leave unpaid hundreds of thousands of workers, close parks, and delay key economic reports such as the jobs data.