Senate rejects competing bills, increasing risk of shutdown on Oct. 1

Headline Legal News

The Senate rejected competing measures on Friday to fund federal agencies for a few weeks when the new budget year begins on Oct. 1, increasing prospects for a partial government shutdown on that date.

Leaders of the two parties sought to blame the other side for the standoff. Democrats accused Republicans of not negotiating with them to address some of their priorities on health care as part of the funding measure, even though they knew Democratic votes would be needed to get a bill to the president’s desk.

Republicans said Democrats were making demands that would dramatically increase spending and were not germane to the core issue of keeping agencies fully running for a short period of time while negotiations continued on a full-year spending package.

It’s unclear how the two sides will be able to avoid a shutdown. Republicans are planning on what amounts to a do-over vote on their proposal close to the deadline in the hopes that more Democrats will have second thoughts. Democrats are repeating their demand that Republicans sit down with them and work on a compromise.

“The theater must end,” Senate Democratic Leader Chuck Schumer, D-N.Y., said after the vote. “Let’s sit down and negotiate.”

Senate Majority Leader John Thune, R-S.D., gave no indication of a change in course.

“All it takes is a handful of Democrats to join the Republicans in keeping the government open and funded, and to ensure we have a chance to get the appropriations process completed in the way it was intended,” Thune said.

The Senate action came after the House earlier in the day passed the Republican-led funding bill. The measure would extend government funding generally at current levels for seven weeks. The bill would also add about $88 million in security funding for lawmakers and members of the Supreme Court and executive branch in the wake of the assassination of conservative activist Charlie Kirk.

The vote was 217-212. Rep. Jared Golden of Maine was the lone Democratic member to support the bill. Rep. Marie Gluesenkamp Perez, D-Wash., also said she tried to vote for the bill but was not recognized by the presiding officer. She was listed officially as not voting.

House Speaker Mike Johnson of Louisiana said he knew he had few votes to spare as he sought to persuade fellow Republicans to vote for the funding patch, something many in his conference have routinely opposed in past budget fights. But this time, GOP members saw a chance to portray the Democrats as responsible for a shutdown.

“The ball is in Chuck Schumer’s court. I hope he does the right thing. I hope he does not choose to shut the government down and inflict pain on the American people,” Johnson said.

President Donald Trump had urged House Republicans to pass the bill and put the burden on Democrats to oppose it. GOP leaders often need Trump’s help to win over holdouts on legislation.

Trump predicted Friday that there could be “a closed country for a period of time.” He said the government will continue to “take care” of the military and Social Security payments in a closure.

Democratic leader Hakeem Jeffries, D-N.Y., said that in opposing the continuing resolution, Democrats were working to protect the health care of the American people. He said that with Republicans controlling the White House and both branches of Congress, “Republicans will own a government shutdown. Period. Full stop.”

The Senate moved quickly after the House vote to take up the measure plus the Democratic counter. Both bills fell far short of the 60 votes required for passage.

The Democratic proposal would extend enhanced health insurance subsidies set to expire at the end of the year, plus reverse Medicaid cuts that were included in Republicans’ big tax breaks and spending cuts bill enacted earlier this year.

The Democratic measure actually received more votes than the Republican one due to absences. The 47-45 vote went strictly along party lines.

“The American people will look at what Republicans are doing, look at what Democrats are doing, and it will be clear that public sentiment will be on our side,” Schumer said.

The Republican measure gained 44 votes, including from Democratic Sen. John Fetterman of Pennsylvania. But 48 voted against it, including two Republicans, Sens. Rand Paul of Kentucky and Lisa Murkowski of Alaska.

Related listings

Workers’ Compensation Subrogation of Administrative Fees and Costs

When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.

In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.

In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.

Business News

New York Adoption and Family Law Attorneys Our attorneys have represented adoptive parents, birth parents, and adoption agencies. >> read