October 21, 2025

Bringing you the latest news impacting our network from Congress and the Administration.

Federal Shutdown: Take Action; Housing Bill Advances; Midterm Elections; Telehealth and More.

Federal Government Shutdown: New Demands, Growing Consequences

Where Things Stand Now

As the federal government shutdown stretches into its third week, negotiations have grown more complex. In addition to demands for a permanent extension of Affordable Care Act premium tax credits, Congressional Democrats are now calling for the reversal of thousands of recent federal employee layoffs—known as reductions-in-force (RIFs)—as part of any deal to reopen the government. These mass firings, initiated by the Trump administration to increase pressure on Democrats, have sparked legal challenges and intensified partisan tensions. The added demand to rehire affected workers could further delay resolution, even as bipartisan talks continue behind the scenes.

Impacts of Shutdown

Meanwhile, the shutdown’s impact on essential services is deepening:

• Agriculture Secretary Brooke Rollins warned that funding for the Supplemental Nutrition Assistance Program (SNAP) will run out within two weeks, potentially leaving over 41 million Americans without food assistance. States have been directed to halt processing November benefits, and alternative funding sources are limited.
• Nonprofits, many of which rely on federal grants and contracts, are also facing mounting financial strain. Organizations are considering emergency measures such as staff reductions, applying for loans, and seeking stopgap support from private funders to maintain operations.

Take Action: We encourage you to use the online tool below, courtesy of our advocacy partner the National Council of Nonprofits, to contact your Senators and Representative and ask them to quickly reach a bipartisan agreement to enact a spending measure to keep the government open.

Senate Advances Landmark Bipartisan Housing Legislation

On October 9, the Senate passed the Renewing Opportunity in the American Dream (ROAD) to Housing Act (S. 2651) as an amendment to the National Defense Authorization Act (NDAA, S. 2296), which passed with strong bipartisan support (77–22). The ROAD to Housing Act, originally introduced by Senators Tim Scott (R-SC) and Elizabeth Warren (D-MA), marks the first major bipartisan housing bill in over a decade and includes 40 provisions aimed at expanding housing access, improving affordability, and increasing federal program efficiency.

The legislation incorporates key priorities for our network, including:

• Improvements to USDA rural housing programs via the Rural Housing Service Reform Act
• Reauthorization and enhancement of the HOME Investment Partnerships Program, with flexible funding for affordable and mixed-income housing
• Required interagency coordination among HUD, USDA, and the VA to streamline processes and share data

An equivalent bill to the ROAD to Housing Act has not yet been introduced in the House, so while that chamber passed its own version of the NDAA (H.R. 3838) in September, it does not include housing language. However, conference negotiations on the NDAA are moving forward now between the Senate and the House, with the Senate urging the House to accept the ROAD to Housing Act in the final package. We will continue tracking this process closely and advocating for the inclusion of these critical housing provisions in the final NDAA bill.

Medicare Telehealth Flexibilities Expired—Support Needed to Ensure Permanent Access

Temporary Medicare telehealth flexibilities that expanded access to care during the COVID-19 pandemic and beyond expired on September 30, 2025. These flexibilities proved vital for increasing access to care for patients especially in rural and underserved areas, while also reducing healthcare costs.

In order to make these benefits permanent, bipartisan legislation was recently introduced in both the House and the Senate entitled the Creating Opportunities Now for Necessary and Effective Care Technologies (CONNECT) for Health Act (H.R. 4206/S. 1261.) Led by Reps. Mike Thompson (D-CA) and David Schweikert (R-AZ) in the House and Sens. Brian Schatz (D-HI) and Roger Wicker (R-MS) in the Senate, the bills have 56 and 65 co-sponsors, respectively. Lutheran Services in America strongly supports this bill. 

Take action: We encourage you to identify and call your representative and senators and urge them to co-sponsor this legislation to ensure continued access to telehealth services.

Supreme Court Case Could Reshape Congressional Maps Before 2026 Elections

The U.S. Supreme Court is currently weighing a major case that could significantly weaken Section 2 of the Voting Rights Act, which has long protected minority voters from discrimination in redistricting. At issue is whether states can intentionally draw majority-minority districts—such as Louisiana’s second majority-Black congressional district—without violating the Constitution’s equal protection clause. A ruling that limits or eliminates race-conscious redistricting could lead to widespread changes in congressional maps, particularly in Southern states, where minority voters have historically been concentrated in districts that reflect their voting power.

With the 2026 midterm elections approaching, the timing and scope of the Court’s decision could directly affect the balance of power in the U.S. House. If states redraw maps to reduce the number of majority-minority districts, it could shift competitive seats away from Democrats, who tend to perform strongly in those areas. This would be especially consequential in a cycle where control of the House is expected to be closely contested.

What We're Reading

• Trump's immigration crackdown weighs heavy on the US labor market
• Medicare telehealth, hospital-at-home payments on hold
• What to Know About the Medicare Open Enrollment Period and Medicare Coverage Options
• How Government Funding Disruptions Affected Nonprofits in Early 2025
• State Responses to H.R. 1 Cuts in Medicaid Funding
• Trump admin looks at deep cuts to homeless housing program

For more information, please contact Sarah Dobson, Senior Director of Public Policy and Advocacy, or Bill Kallestad, Senior Director, Public Policy and Advocacy, Disability Network.