BTA Friends,
A quick update as federal fiscal year 2026 gets underway without a spending agreement in place and the government enters a partial shutdown.
I have some notes on the shutdown generally and an update on the conversation on the Hill, but we’ll also be watching for some new executive orders from the White House that are rumored to be coming down the pike today that could formalize previously announced new tariffs on certain pharmaceuticals and heavy trucks.
CBP briefing
CBP held a call today for the trade community where the agency mostly reiterated the actions it has taken during previous government shutdowns.
The briefing was conducted by the Office of Trade Relations and the Office of Field Operations (Cargo and Conveyance). The big message: CBP operations will continue without interruption. POEs are staffed as per usual, and passenger and cargo processing continues.
A few topics that were addressed during the Q&A:
- Your first point of contact should remain your local port contact. If your PGA contact is unavailable, you should work through your local port contact.
- Refunds should be processed as usual, but CBP will double check on ACH/check processing. (A questioner said ACH was interrupted during previous shutdowns.)
- CMS messages will be issued as necessary.
- Employees in Fines, Penalties, and Forfeitures will continue to work.
- Reimbursable Service Agreements should not experience any interruptions.
- As of this time, there is no anticipated change to the next broker exam. The agency will make an announcement if a change proves necessary.
- Your ABI contacts should still be available without change.
- CBP says it’s prepared to implement new tariffs recently announced by the White House. They could not speak definitively, however, to the issuance of new HTS codes. We’ll keep you updated on any future announcements on this.
Border agencies working, but without pay
Frontline DHS border personnel, including CBP Officers, will report to work, but they won’t be paid until a funding agreement is reached. We issued this statement on Monday that expresses our concern about the negative effects on CBP.
Furloughs, reduced staffing, and any service interruptions would create costly delays and jeopardize economic stability on both sides of the border. Just as concerning, our frontline Customs and Border Protection personnel, who are already stretched thin, would be forced to work without pay, further straining morale, recruitment, and retention.
Firings vs. furloughs
The Office of Management and Budget last Wednesday sent a memo to agency heads instructing them to prepare for a shutdown by considering Reductions in Force (RIF) for positions that no longer will have funding and that are not in line with White House priorities. This is different than previous shutdowns because the administration is contemplating permanent job cuts rather than temporary furloughs.
The disagreement on Capitol Hill
When a federal budget is passed under regular order, it’s comprised of 12 separate appropriations bills that are adopted by each chamber on Capitol Hill. That process, however, has not occurred in several years. The last decade has been characterized mostly by a series of stopgap continuing resolutions punctuated by occasional shutdowns followed by a large omnibus spending bill that encompasses all of government spending.
The Republican controlled House has already passed a continuing resolution. That bill, however, has not been able to achieve the necessary 60 votes in the Senate, hence the shutdown. Dueling bills in the Senate – the House-passed CR and a Democrat-backed bill – have both failed. Senate Majority John Thune (R-S.D.) has signaled that he’s willing to continue holding votes.
Democrats want to use this moment to roll back provisions in this summer’s H.R. 1 (One Big Beautiful Bill Act), specifically focused on Obamacare tax subsidies and Medicaid coverage. While Republicans balk at a spending increase, leadership has said the health care issues can be discussed, but only after a CR passes and the government reopens.
How long?
Recent shutdowns have varied in length, but all sides of Capitol Hill and the White House should keep negotiating during the shutdown. The conclusion of this one will be determined based on which side caves first and whether they can point to any wins or concessions to their party faithful.
Even if the Senate passes the House-passed CR, that bill will conclude in November, likely forcing another standoff between Senate Democrats and the White House.
The framing
The partisanship, as one would expect, is fierce. The White House is laying blame squarely at the feet of Democrats. Senate Democratic Leader Chuck Schumer (D-NY) is focusing his rhetoric on the looming increase in Affordable Care Act premiums.
The politics of shutdowns aren’t always easy to predict, but typically the legislative branch emerges more bruised. This time is murkier; the Republicans control all branches of government, but it’s not totally clear what wins the Democrats can extract from this exercise this time around.
We’ll continue to watch developments closely. If you see service disruptions at your port, please let us know.
