Washington Update: Shutdown Begins, ASA Advances Priorities Amid New Tariffs

The federal government shut down at 12:01 AM on October 1 after Senate Republicans and Democrats failed to agree on a Continuing Resolution to extend funding through November 21. Both party versions of the CR failed on the floor, guaranteeing a shutdown. Three members of the Democratic Caucus - Senators John Fetterman (PA), Catherine Cortez Masto (NV), and Independent Angus King (ME) voted for the GOP measure. Democrats sought additional funding to extend Obamacare tax credits that expire at year-end, but that complex policy issue could not be resolved quickly. Essential employees, including air traffic controllers, military personnel, law enforcement, and senior Congressional staff, will continue working without pay and will receive back pay once funding is restored. The end date of the shutdown is currently unknown; the 2018–2019 shutdown lasted 35 days and remains the longest in U.S. history.
 

ASA Action
 

Last week, ASA Advocacy was active on Capitol Hill during recess, meeting with key staff as lawmakers prepared for a government shutdown. Energy policy, workforce development, and appropriations were top priorities while Congress works on the budget and other year‑end legislation. ASA Vice President of Advocacy Steve Rossi met with the Speaker’s Office and the White House alongside industry partners PHCC to discuss the energy and workforce agenda. He later joined coalition members from the High-Performance Buildings Coalition to outline critical appropriations needs for plumbing research and water‑efficiency programs, capping a week of productive discussions on legislation and policy important to the PHCP/PVF industry.
 

Tariffs
 

Section 232 tariffs on lumber, pharmaceuticals, and heavy trucks are scheduled to begin tomorrow, though only the lumber details have been released so far. Of interest to our industry, after the President announced a 50% tariff on bathroom vanities, they will now face a 25% tariff on cabinets and upholstered furniture listed in Annex I takes effect October 14 at 12:01 a.m., rising to 50% for cabinets and 30% for upholstered furniture on January 1, 2026.  A 10% tariff applies to products in Annex I include softwood lumber.  Products listed in Annex III (PTAAP) receive no additional tariff; tariffs on imports from the UK will be capped at 10% and those from the EU and Japan at 15%.
 

Per the White House, comments on the shutdown here.
 

Speaker Johnson’s take on the shutdown here.
 

ICYMI, Senate Majority Leader Thune discusses the shutdown on CNBC.