Morning Report is The Hill’s a.m. newsletter. Subscribe here.
In today’s issue:
▪ Navigating the shutdown
▪ Hegseth enacts DOD vision
▪ Epstein files vote delayed
▪ 2020 lingers over Georgia race
The federal government has shut down for the first time in more than six years.
Federal workers deemed non-essential will be furloughed, many services will be suspended or delayed, and some economic data won’t be produced, among many other impacts.
Republicans say they did their part by advocating for an extension of government funding at current levels while bipartisan negotiators work through longer-term appropriations bills.
Democrats, who say they don’t trust President Trump to follow Congress’s lead on spending, have sought to tie the funding debate to a push to extend health care subsidies for millions of Americans and roll back the administration’s deep cuts to Medicaid.
Hours before the shutdown began, both parties on Tuesday night blocked spending bills from the other, as they did earlier in September.
Democrats voted almost unanimously against a GOP bill to fund the government through mid-November. Republicans uniformly rejected a Democratic proposal to fund the government for a month while permanently extending health insurance premiums and rolling back the Medicaid cuts.
Afterward, Office of Management and Budget (OMB) Director Russell Vought issued a memo directing agencies to begin executing their plans for an “orderly shutdown.”
Here are five looming questions as the shutdown begins:
How long will the shutdown last?
The last major government shutdown, which took place during Trump’s first term, was also the country’s longest-ever, running 35 days.
Unlike in previous funding battles, both sides this time appeared to have incentives to shut down the government — and both hope they can win the messaging wars.
While Republican and Democratic leaders have long shied away from shutdowns as politically devastating, the politics this time set up a situation where neither side felt a particular need to cave.
Senate Minority Leader Chuck Schumer (D-N.Y.) faced enormous pressure to oppose the “clean” stopgap measure pushed by Republicans after he drew progressives’ fury for agreeing to back a GOP funding bill in the spring.
And since it was Democrats in the position of asking for something to be included to secure their support, rather than simply extending funding, Republicans felt they could easily blame them for unnecessarily tying up the process.
How long this shutdown lasts depends on how well each side believes it’s faring in the eyes of the public and if the political cost of staying dug in ultimately outweighs acquiescing.
One area to watch is whether either side agrees to a shorter-term funding bill — under two weeks — to get the government’s lights back on, at least temporarily. Leaders previously ruled out a seven- or 10-day continuing resolution early this week.
Will either side cave on health premiums?
The biggest sticking point heading into the shutdown was whether to include an extension of Affordable Care Act (ACA) premium tax credits as part of a deal to fund the government.
The subsidies, which expire at the end of this year, were included in the American Rescue Plan Act signed by then-President Biden in 2021 and later extended in Democrats’ reconciliation plan.
Democrats made extending the subsidies now rather than later their line in the sand ahead of the shutdown.
Schumer at the White House meeting Monday emphasized the financial impact that will be levied on families if the subsidies expire, saying it could add several hundred dollars to monthly bills.
Republicans broadly rejected Democrats’ rationale, alternatingly arguing that the subsidies go to wealthier Americans and that Democrats want to provide health care for immigrants without legal status.
The nonpartisan Congressional Budget Office said earlier this month that fully extending the subsidies would cost up to $350 billion through 2035. If the credits expire next year, 4 million people are projected to lose coverage, and costs would rise for millions more.
Senate Majority Leader John Thune (R-S.D.) said in a Sunday interview that the subsidies will require “reforms” to get GOP support, describing them as “waste, fraud and abuse.” Some conservatives have pushed to drop the credits entirely.
How far does Trump go with federal layoffs?
The White House amped up pressure on Democrats last week with a memo from OMB directing agencies to prepare for mass layoffs in the event of a lapse in discretionary funding starting Oct. 1.
While some federal employees are typically furloughed during shutdowns, the memo signaled the Trump administration seeks to permanently fire personnel during the shutdown.
The White House reiterated this week that federal layoffs are coming. Trump said Tuesday that “a lot” of federal workers may be laid off, while not offering specifics.
“We can do things during the shutdown that are irreversible, that are bad for them and irreversible by them,” Trump said of Democrats later in the day. “Like cutting vast numbers of people out, cutting things that they like, cutting programs that they like.”
Democratic leaders dismissed the initial threat to lay off workers as a tactic to force them to agree to the House-passed “clean” funding bill.
But some Democratic lawmakers have quietly expressed worry about the layoffs, with little assurance that seeking to block the move in court will be successful.
The administration in recent months has also rehired hundreds of workers across multiple departments, calling into question how many roles it hopes to permanently axe.
What government services will be most affected?
Depending on how long the shutdown lasts, the impact could be increasingly severe.
Most immediately, many federal employees will cease working as they’re furloughed. That will mean fewer people to handle services across numerous programs and agencies. Those who are deemed essential will continue working without pay.
U.S. airlines have already warned of flights delays, and airport wait times likely also will be longer. Air traffic controllers and Transportation Security Administration (TSA) employees are required to work without pay. During the last shutdown, a significant number of TSA employees called out sick.
Federal food benefits should be unaffected initially, but those who receive help from the Supplemental Nutrition Assistance Program could feel the effects if the shutdown lasts a few weeks.
An Agriculture Department spokesperson told Nexstar that benefits are provided to low-income families the month prior, so they should still be sent out as planned in October. But benefits for November could be delayed or interrupted if states don’t receive instructions from the department in time.
Other effects include the Food and Drug Administration pausing its acceptance of new drug applications and certain medical device submissions, and the Centers for Disease Control and Prevention’s communications with the public being interrupted.
The Hill’s Rachel Frazin reports how the National Flood Insurance Program won’t be able to issue new policies or renewals. This could cause those with flood insurance under the program to lose their coverage if the shutdown is prolonged.
The National Park Service issued an updated contingency plan Tuesday evening saying that most national parks will remain open, though thousands of employees won’t be working.
Other key services will remain unobstructed. Social Security payments will still go out, and senior citizens will be able to have their health-related needs covered through Medicare.
Mail will also still be delivered as the U.S. Postal Service is an independent entity not reliant on tax dollars.
Who is likely to face the most blame?
In January 2019, during the last shutdown, 53 percent of Americans surveyed in an ABC News/Washington Post poll said they viewed Trump and GOP as mainly responsible compared with 29 percent who blamed Democrats.
That showdown ended after Trump dropped his demand for more funding for his proposed border wall. He later announced a national emergency at the southern border, allowing him to direct some funding for wall construction.
“Ultimately, Donald Trump and Republicans came to their senses,” House Minority Leader Hakeem Jeffries (D-N.Y.) said Sunday on ABC’s “This Week,” adding he hoped for “a quick path out” of another shutdown.
This time, Democrats are making demands as part of a funding deal, while seeking to emphasize the GOP remains in control of all levers of government in Washington.
Predicting who will face the brunt of the public’s blame in advance of a shutdown is difficult, and some early polling data is mixed.
A New York Times/Siena poll found almost two-thirds of respondents said Democrats shouldn’t vote to shut down the government if their demands aren’t met, including nearly 6 in 10 independents and 43 percent of Democrats.
Meanwhile, an NPR/PBS News/Marist Poll showed a plurality of 38 percent of respondents said Republicans would be mostly to blame if the government shuts down, while 27 percent said they’d mostly blame Democrats. Thirty-one percent said they’d blame both sides equally.
▪ The Hill: Five takeaways as a government shutdown begins.
▪ The Hill: When will the shutdown end? Lawmakers have no clue.
Smart Take with Blake Burman
Negotiations around a government shutdown weren’t the only negotiations front and center in Washington on Tuesday. The White House announced a deal with pharmaceutical giant Pfizer, under which it agreed to offer its drugs at reduced prices for Medicaid programs. Pfizer said for three years it will escape tariffs and promised to manufacture in the United States. The White House also announced that sometime next year, Americans will be able to shop for discounted drugs on a government-run website.
Mehmet Oz, the administrator of the Centers for Medicare and Medicaid Services (CMS), said the announcement is part of the White House’s plan to protect innovation while keeping costs low for Americans.
“We don’t want to strip the innovation out of American pharmaceuticals,” Oz said. “We want American industry to progress, prosper. We want to be on the cutting edge, always. We don’t want to dull that knife by making rules that hurt innovation. But at the same time, we’ve got to be fair to the American people.”
You are likely going to hear about more deals as well. Chris Klomp, the CMS deputy administrator, told me the administration closed another Pfizer-like deal on Tuesday, so this is likely not going to be the last announcement from the White House on this front.
Burman hosts “The Hill” weeknights, 6p/5c on NewsNation.
3 Things to Know Today
1. Federal employees at multiple agencies received an email blaming congressional Democrats for shutting down the government, which ethics experts blasted but said stopped short of violating the law.
2. A new project focused on Trump from the creator of “Veep” could be facing financial trouble because of fears about retaliation from the administration, the creator said.
3. The number of abortions that clinicians provide in states where the procedure is allowed declined for the first time since the Supreme Court’s decision in 2022 overturning Roe v. Wade, new data shows.
Leading the Day
PENTAGON POLICY SHIFTS: Defense Secretary Pete Hegseth laid out a series of departmental policy changes as part of his vision for the Pentagon during a rare gathering of hundreds of top military leaders in Quantico, Va., on Tuesday.
The meeting, which brought together 800 generals and admirals from around the world with just a few days’ notice, was an opportunity for the defense chief to further explain his goals, including steps underway to target “woke” views among the military.
The secretary’s speech focused in large part on increasing the physical fitness standards for service members, calling out “fat” troops and generals. He said the military will adopt the “highest” male standards for all combat roles, even if that means fewer women serving in them.
Hegseth also announced an overhaul of the Pentagon’s process for filing complaints with its independent watchdog, including the elimination of anonymous complaints. He argued the process has been “weaponized.”
The department will also start a “full review” of how words like “bullying,” “hazing” and “toxic leadership” are used in accountability efforts, with Hegseth claiming they have also been used inappropriately against leaders. He also said basic training will be adjusted, allowing drill sergeants to instill “healthy” fear in recruits.
“Yes, they can shark attack, they can toss bunks, they can swear, and yes, they can put their hands on recruits. This does not mean they can be reckless or violate the law, but they can use tried-and-true methods to motivate new recruits to make them the warriors they need to be,” he said.
Trump, who spoke immediately after Hegseth, touted his administration’s efforts to strengthen the military while delving into common threads like criticizing former President Biden, expressing frustration with Russian President Vladimir Putin and his hopes to win the Nobel Peace Prize.
But one of the most notable moments came well into his speech when the president argued that “dangerous” U.S. cities should be used “as training grounds for our military.” The president has sent National Guard troops into several jurisdictions around the country to protect Immigration and Customs Enforcement facilities and address crime.
Oregon officials have blasted Trump’s move to deploy National Guard troops to Portland. Illinois Gov. JB Pritzker (D) has similarly ripped the president’s plan to send troops to his state.
“Defending our homeland is the military’s first and most important priority,” Trump said Tuesday at Quantico.
Here’s five takeaways from Hegseth’s speech, which he called “liberation day for America’s warriors.”
▪ The Washington Post: “Military leaders voice concern over Hegseth’s new Pentagon strategy.”
▪ Politico: “’Could have been an email’: Officials balk at Hegseth’s generals meeting”
TRUMP PRESCRIPTION DRUG PLATFORM: The administration has announced plans to roll out a website, called TrumpRX.com, for Americans to purchase pharmaceutical drugs at discounted prices.
The president made the announcement — along with one that Pfizer has agreed to sell its products in the U.S. at “Most Favored Nation” pricing — a day after his deadline for drugmakers to offer lower prices.
Trump signed an executive order earlier this year for companies to sell their drugs in the U.S. at the lowest price they sell them in other developed countries.
The order also requires the companies to establish direct-to-consumer avenues to cut out middlemen and not sell drugs for lower prices in other countries.
The Hill’s Joseph Choi reports that a senior administration official said the TrumpRx website will hopefully be launched early next year. Chris Klomp, the deputy administrator of the Centers for Medicare and Medicaid Services, said drugs would be made available “always” at lower prices than what’s currently available.
Trump sent requests to 16 other drugmakers beyond Pfizer to comply with his executive order, but whether they will follow suit is unclear. Some companies told The Hill they’re in conversation with the administration.
“The big winner of this deal, clearly, will be the American patient. There is no doubt about it. They are the ones that will see significant impact in their ability to buy medicines,” Pfizer CEO Albert Bourla said. “But I would argue that it is not the only winner. I think who else is the winner? Here it is American innovation and American economy.”
▪ Politico: Drugmakers side-stepping Trump’s most-favored nation pricing ask.
TRUMP WITHDRAWS BLS NOMINEE: The president has withdrawn his nominee to lead the Bureau of Labor Statistics (BLS) after he forced out the past leader over his criticism of jobs data.
Trump pulled back E.J. Antoni‘s nomination less than two months after making it as the pick faced some criticism and potential hurdles toward getting confirmed. After Trump fired the past commissioner, Erika McEntarfer, following lower-than-expected job numbers in July and major downward revisions to other job reports, Democrats and economists expressed concern that Antoni could politicize data or withhold it entirely.
Antoni previously expressed skepticism about jobs data from the bureau and was among those calling for McEntarfer’s firing. CNN’s KFile also reported last month that Antoni ran a social media account, which has since been deleted, that made various inflammatory comments.
CNN reported that Antoni may have struggled to win over key Republican senators needed for his confirmation, like Sens. Susan Collins (Maine) and Lisa Murkowski (Alaska).
The conservative Heritage Foundation, where Antoni has worked as a top economist, confirmed that he would be returning to a role with the organization.
A White House official said Trump would select a new nominee “very soon” and is “committed to fixing the longstanding failures” at BLS. They praised Antoni as a “brilliant economist.”
AI VIDEO BACKLASH: Trump is doubling down after Democrats raged against an artificial intelligence-generated video of Jeffries and Schumer that they condemned as racist.
The president posted a second video on Truth Social on Tuesday evening that depicts Jeffries wearing a sombrero and a mustache while a mariachi band of Trump plays in the background. It follows the first video he posted Monday that similarly depicted the House Democratic leader.
Trump on Tuesday night also posted photos from his meeting with congressional leaders earlier this week. The photos show Schumer, Jeffries and the GOP leaders gathered around the Resolute Desk, with two “Trump 2028” hats on top facing the Democrats. In one photo, the president smiles and appears to be gesturing toward Jeffries.
Jeffries slammed the initial AI video as a “malignant distraction” from Republicans trying to “rip away” health care from the American people.
“Mr. President, the next time you have something to say about me, don’t cop out through a racist and fake AI video,” he said, adding, “Say it to my face.”
Schumer also compared Trump to a 10-year-old “trolling” on the internet.
Republicans have largely brushed off the videos, with one GOP senator saying he viewed the initial one as “in jest.”
House Speaker Mike Johnson (R-La.) was spotted Tuesday telling Rep. Madeleine Dean (D-Pa.) at the Capitol that the first AI video “wasn’t my style.”
“Not your style? It’s disgraceful. It’s racist. You should call it out,” Dean responded.
The second video Trump posted started out with Jeffries denouncing the first, calling it “disgusting” and vowing to make clear that “bigotry will get you nowhere.” Then the sombrero appears and the music begins.
When & Where
The president will sign executive orders at 4:30 p.m.
The Senate willmeet at 10 a.m.
The House willnot convene on Wednesday.
Zoom In
EPSTEIN PETITION DELAY: The push for a vote on the potential release of files held by the federal government related to Jeffrey Epstein has seemingly hit a delay as House Speaker Mike Johnson (R-La.) and other top Republicans have refused Democrats’ requests to swear in their newest soon-to-be member.
Rep.-elect Adelita Grijalva (D-Ariz.) won a special election last week to fill the remainder of her late father’s term and has vowed to sign a discharge petition from Rep. Thomas Massie (R-Ky.) to force a vote in the House on releasing the Epstein files. Her support would mark the petition’s 218th signature, reaching the threshold to bring a vote to the floor.
But the House is not in session again this week and Republicans have signaled Grijalva’s swearing-in will take place when the House returns to business.
Rep. Morgan Griffith (R-Va.), who presided over a pro forma session from the House on Tuesday, said swearing in new members typically happens when the House is in sessions other than pro forma.
But Grijalva noted that two Florida Republicans were sworn in during a pro forma session the day after they won their special elections in April. She said she hasn’t heard from the Speaker’s office.
A spokesperson for the office said the swearing-in would happen when the House returns to business, currently scheduled for next Tuesday.
All Democrats and three other Republicans have signed Massie’s petition, but Republican leadership has opposed it on the grounds that they don’t believe it adequately protects Epstein’s victims and the House Oversight and Government Reform Committee is already investigating the situation.
Critics have argued that Johnson and other Republicans have been trying to slow down the vote as much as possible, particularly amid speculation over Trump’s past ties to Epstein, the late convicted sex offender.
▪ The Hill: Rep. Marjorie Taylor Greene (R-Ga.) raises possibility of ‘heinous actions’ against her over Epstein files advocacy.
▪ ABC7 Los Angeles: Epstein survivors call for release of files.
NATIONAL GUARD DEPLOYED: Trump’s use of the National Guard may be expanding further after two Republican governors took steps that could widen its role in addressing crime and pushback to ICE raids.
Louisiana Gov. Jeff Landry (R) submitted a request to the Defense Department requesting 1,000 members of the state National Guard to be activated to address crime across the state. Meanwhile, Missouri Gov. Mike Kehoe (R) authorized his state’s National Guard to assist ICE in performing “administrative, clerical and logistical tasks.”
These are the latest moves from Republican governors after several vowed to support Trump in his efforts to use the guard in major U.S. cities. Trump has sent troops into Washington, D.C., for a couple months and deployed the Guard in Los Angeles earlier this year.
Elsewhere
SHADOW OF 2020: The legacy of the 2020 presidential race in Georgia seems likely to play out in the state’s gubernatorial race with three key figures challenging each other for the GOP nomination next year.
Lt. Gov. Burt Jones, state Attorney General Chris Carr and Georgia Secretary of State Brad Raffensperger are all running in the Republican primary. Raffensperger memorably refused Trump’s urging for him to “find” the votes necessary for him to win the state in 2020.
Carr also received attention for pushing back against attempts to overturn the result, defending the state against lawsuits over it. Meanwhile, Jones served as one of more than dozen fake electors who pledged to cast votes for Trump despite his losing the state.
Trump has already weighed in to endorse Jones.
The Hill’s Caroline Vakil reports how the three candidates will be a test for Georgia Republicans as to whether they prioritize loyalty to Trump or are willing to support a more independent-minded candidate.
“If not actively [playing a part], it’s in people’s hardwiring,” former Rep. Jack Kingston (R-Ga.) told Vakil about the role the 2020 race will play.
The race for the Georgia governor’s mansion may be one of the most competitive next year as Democrats try to win it for the first time since before the turn of the century. The primary on both sides has grown increasingly crowded as numerous top candidates eye the office.
▪ Associated Press: Georgia’s 2026 candidates can’t escape fallout of Trump’s 2020 claims.
MAMDANI’S MODERATE PROBLEM: New York City mayoral candidate Zohran Mamdani pledged to win over more moderate voters who have expressed skepticism of him following his surprise win in the June Democratic primary, but he’s still struggled to win them over with just more than a month before Election Day.
Mamdani has made some inroads, both in the polls and with respect to endorsements from Democrats who aren’t in the same wing of the party as him. But The Hill’s Amie Parnes reports how skepticism remains over his self-proclaimed label as a democratic socialist, his views on Israel and his lack of experience.
“I think a lot of people were willing to give him the benefit of the doubt if he went out there and talked about some of these concerns but he really hasn’t done that,” one prominent New York fundraiser told Parnes. “If he was really changing minds, one has to wonder why the Democratic leaders in Washington still haven’t gotten behind him.”
Jeffries has signaled a decision on potentially endorsing Mamdani could be coming soon, but other New York Democrats like Schumer and Sen. Kirsten Gillibrand still haven’t endorsed him.
Mamdani is still the clear favorite for the mayoral race, even with incumbent Mayor Eric Adams, who was running for reelection as an independent, out of the race. Opposition is still likely to be split between former New York Gov. Andrew Cuomo, also running as an independent, and Republican Curtis Sliwa.
But Mamdani consistently hasn’t surpassed 50 percent support in polling, suggesting an opening exists if Sliwa drops out and the opposition coalesces behind Cuomo. Sliwa’s insistence that he won’t drop out raises doubts about that path.
Still, Mamdani could likely address questions about that potential if he’s able to tick up his support to a majority as voters are about to make their decisions.
▪ ABC7 New York: Mayoral candidates sharpen attacks on each other.
▪ Vanity Fair: “The legend of Zohran.”
Opinion
As shutdown begins, progressive Democrats imitate the Freedom Caucus, writes The Washington Post editorial board
Democrats should argue Trump has turned the GOP into the Chinese Communist Party, writes The Hill opinion contributor Jos Joseph
The Closer
An earthquake shook the Pacific nation of the Philippines, killing dozens and injuring many more after causing falling debris and damage to buildings.
The Associated Press reported that the 6.9-magnitude quake struck in the central region of the country, killing at least 69 people.
A tsunami warning had been issued after the quake but was later lifted.
The earthquake also disrupted an international beauty pageant with contestants from various countries around the world.
Video obtained by CNN showed the contestants walking on the stage in gowns before the shaking began and some rushed off the stage.
The Philippine news outlet GMA News reported that the quake struck just as the pageant for Miss Asia Pacific International 2025 was wrapping up.
Staffers at the hotel where the pageant took place led guests out of the building, and organizers said all candidates and workers were safe.
