Each week while Congress is in session, our Policy team delivers a key update to highlight a topical benefits, health, or retirement news item from the Hill, such as a newly introduced bill, a summary of a committee hearing, or another hot-button matter.

Most federal agencies are prohibited from conducting normal operations during the shutdown, though many functions related directly to national defense, health, and safety are permitted to continue. For example, at the Centers for Medicare and Medicaid Services at the Department of Health and Human Services, client casework and contract oversight are suspended while Medicare, Medicaid, and CHIP continue to operate. At the Employee Benefits Security Administration at the Department of Labor, 75% of workers will be furloughed, but the agency will continue criminal investigations under ERISA along with certain “situations which require immediate action.” This includes investigations running up against statutes of limitation, and investigations and enforcements under the No Surprises Act (which has its own, unexpired appropriation). At the Department of the Treasury, prior appropriations allow the agency to continue work on implementing the One Big Beautiful Bill Act and various deregulation efforts, but the agency reportedly plans to furlough nearly half its workforce.

Most agencies have developed shutdown contingency plans, which can be found here: