1. Federal Government Shutdown
What happened?
At 12:01 a.m. on Oct. 1, the federal government shut down after Congress failed to pass a budget. Many federal services are halted, hundreds of thousands of federal workers are furloughed, and many more are working without pay until the shutdown ends.
Why did it happen?
Congress missed the Sept. 30 deadline to fund the government. Republicans pushed a short-term plan; Democrats pushed for a plan that also included extending Affordable Care Act (ACA) tax credits to keep insurance affordable. The sides could not agree, and the White House refused to negotiate with Democrat leaders.
What do ACA tax credits have to do with this shutdown?
Democrats are proposing to extend ACA premium health tax credits that about 20 million Americans use to afford health insurance. Without an extension, premiums will jump 75% at the end of 2025. That would force millions of families to drop coverage. Undocumented immigrants are not eligible for these tax credits. Losing them would directly hurt working families.
How does this affect workers?
- Federal employees: Some are furloughed, others must keep working without pay. Everyone will eventually get back pay once the shutdown ends.
- State & local workers: Many public services depend on federal funding. If the shutdown drags on, programs like Head Start, state OSHA, and disability determination services could face furloughs or cuts.
- Health care & safety-net programs: Medicaid, SNAP, and others have short-term funding but could be disrupted if the shutdown lasts.
What’s different this time?
The Trump administration is threatening to fire federal workers during the shutdown — something no president has ever done. That move would be challenged immediately, but it adds to the uncertainty.
Bottom line
The shutdown will last until Congress and the White House agree on a funding deal. The longer it goes, the more it hurts workers, families, and the public services we all rely on.
2. More Federal Employees Lose Union Rights
On September 25, the Federal Bureau of Prisons announced it was terminating its collective bargaining agreement with the Council of Prison Locals (CPL-33), citing the union becoming “an obstacle to progress instead of a partner in it.” The termination of the contract would impact more than 30,000 prison workers. CPL-33 is an affiliate of the American Federation of Government Employees (AFGE), which has sued the Trump administration for several executive orders that impact the federal workforce.
3. Trump Administration Guts NYC Funding
Roughly $18 billion in federal funding for NYC infrastructure projects have been put on hold. This funding is critical to two projects, the Hudson Tunnel and the Second Ave Subway. According to Russ Vought, the Head of the Office of Management and Budget, this is to “ensure funding is not flowing based on unconstitutional DEI principles.” This comes one day after the Trump Administration gutted federal funding for the NYPD’s counter-terrorism unit as retribution for NYC’s sanctuary city immigration policies.
4. Unemployment Insurance Increase
This week, unemployment insurance (UI) benefits in New York State were increased for the first time since 2019. Now, New Yorkers facing job loss will be eligible to receive up to $869 per week, up from a maximum of $504 per week. This increase is a result of an agreement in the FY 2025-26 budget to spend $7 billion to pay down the state’s UI debt to the federal government, which arose when the state had to borrow heavily to cover rising unemployment claims during the COVID pandemic.
5. CSEA Legislative Toolkit
We’re encouraging members to get the word out about our legislative successes. Click the icons below for informational documents that you can print, share, and post on social media to spread the news. You can also check out our summary of the 2025-2026 New York State Budget.
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