Day 49: The Longest Shutdown in History, and Congress Left Town Without Fixing It

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Dhs Shutdown And Fema

The shutdown surpassed the 43-day record on March 29. As of today it stands at Day 49 with no end in sight until at least April 14. The week produced a series of dramatic reversals.

The House passed a 60-day CR (213-203) on March 27; the Senate rejected it; both chambers left for two-week recess. On April 1, Trump and Johnson reversed course with a two-track strategy: pass the Senate DHS bill (excluding ICE and CBP) through regular order with Democratic votes, then fund ICE and CBP separately via reconciliation by June 1. Thune maneuvered in a nearly empty Senate on April 2 to send the bill back to the House. No vote expected until the week of April 14.

Trump signed a Presidential Memorandum March 27 directing DHS to pay TSA from a $10 billion pool in the One Big Beautiful Bill Act. No appropriation backs it. Back pay for two missed periods arrived March 30. Houston IAH lines fell from 4.5 hours to 9 minutes within 48 hours. National callouts peaked at 12.4% (3,560 officers) on March 27 before easing to 10.6%. Over 500 officers have quit. New hires take 4 to 6 months to train; replacements will not be on checkpoints before the FIFA World Cup. Assaults on TSA officers are up more than 500%.

FEMA's $1 billion BRIC NOFO remains open (applications due July 23). Project cap cut from $50 million to $20 million; phased projects banned; construction readiness weighted at 30 of 90 points. The DRF remains below $5 billion with INF restrictions in force since February 22.

Iran enters Week 5: 50,000 U.S. troops in the region, 15 KIA, 520+ wounded. Hormuz remains closed. Energy strike deadline is April 6. Brent crude at $114 per barrel (+45% YTD); U.S. gas at $4.00 per gallon for the first time in four years.

Build America Bureau And Usdot

Gateway's April 16 preliminary injunction hearing in SDNY is the next critical date. The project continues on a 2 to 3 month runway using $235 million in court-ordered funds. First TBM launch targeted Q2 to Q3 2026. The two largest procurements remain on hold pending access to the full $15 billion.

FTA apportioned $20.6 billion in FY2026 transit formula funding March 31 (~$14 billion immediately available). USDOT announced $999.5 million in SS4A grants March 27.

IIJA reauthorization has materially deteriorated. Nine insiders told Politico the bill is "way behind" and likely pushed to spring 2027. No committee has produced text. A short-term extension is now the baseline. The BAB pipeline stands at approximately $40.5 billion, with Brightline West's $6 billion RRIF loan still unapproved. The STB issued a major NEPA rulemaking March 25 streamlining rail environmental review (comments due April 24).

Usda And Rural Development

USDA halted all new REAP grant awards indefinitely on March 31, citing Executive Order 14315 on renewable energy subsidies. Regulations must be rewritten before any new grants are made. All pending applicants without a fully executed Financial Assistance Agreement must reapply. No timeline provided. REAP guaranteed loans continue to be accepted.

The Farm Bill did not reach the House floor before Easter recess. The $1.3 trillion, five-year bill cleared committee 34-17 but has no floor date. Boozman has not released Senate text. The September 30 expiration of the 2018 extension stands, the same deadline as IIJA. USDA raised B&I guaranteed loan coverage from 80% to 85% for projects under $5 million.

The U.S. Government Shutdown has ended after a record…

The Shutdown

Navigating government shutdowns

P3 And Infrastructure Finance

The private activity bond federal cap is fully exhausted. Zero dollars remain for new allocations after SR-400's $3.32 billion issuance consumed the remaining capacity under the $30 billion ceiling. Every new P3 seeking PAB financing is blocked until Congress acts. The House Transportation Committee markup, expected in April per Chairman Graves, will address PAB cap relief and TIFIA reform.

I-285 East ($7.6 billion, $2.5 billion TIFIA) is in the RFP phase with preferred bidder selection in late summer. I-77 South Charlotte ($3.2 billion) RFP delayed to June. PennDOT targets June 9 for a decision on Cintra's $5 billion I-76 proposal. Trump restructured tariffs April 2: base metals at 50%, derivatives at 25%, grid equipment at 15% through 2027. Construction input prices running at 7.1% annualized.

Doe And Energy Infrastructure

DOE's $1.9 billion SPARK concept papers closed April 2. Full applications are due May 20, with selections in August and awards between October 2026 and January 2027. Three topic areas: Grid Resilience ($427 million), Smart Grid ($614 million), Grid Innovation ($862 million).

Palisades completed primary system passivation April 2, clearing the path for fuel load preparations. The NRC's unauthorized welding review targets April 8 but could slip; if denied, replacing the reactor pressure vessel head could cost $750 million ($1.52 billion DOE loan). Constellation filed at FERC April 2 to transfer capacity rights from Eddystone to Crane, a workaround to PJM delays that could push interconnection to the 2030s. Crane ($1 billion DOE loan, Microsoft PPA) holds to 2027.

EDF retains $289 billion in authority with approximately 80 active applications. Southern Company's $26.54 billion loan remains the benchmark. DOE issued a 202(c) emergency order March 30 directing Craig Station (Colorado coal) to remain available through June 28.

What This Means For Borrowers

1. The shutdown is the longest ever and will not end before April 14. The two-track strategy requires Johnson to assemble a bipartisan majority, then pass a separate reconciliation bill by June 1. Even in the best case, DHS will have been shuttered for two months. TSA back pay is flowing from an untested mechanism with no appropriation. Bridge capital against documented receivables remains the only reliable liquidity path.
2. REAP grants are dead until further notice. USDA froze the entire program pending a regulatory rewrite with no timeline. Any borrower relying on REAP grant proceeds for project economics needs to restructure now. REAP guaranteed loans remain available. ABC structures bridge financing against USDA guaranteed loan commitments.
3. The PAB cap hit zero. No new private activity bond allocations are available for any P3 in the country. The entire managed lane pipeline ($7.6 billion I-285 East, $3.2 billion I-77 South, $5 billion I-76) depends on the April markup. ABC provides interim capital to P3 developers positioning for financial close once the cap is raised.
4. Three September 30 cliffs converge with no legislative momentum. IIJA pushed to 2027. Farm Bill has no floor date. FEMA's capacity degraded by a 49-day shutdown. The $40.5 billion TIFIA/RRIF pipeline, the BRIC NOFO, and every rural development program are running against the same expiration date. Position capital now.
5. The DOE lending thesis is accelerating while everything else stalls. EDF has $289 billion in authority and 80 applications in the pipeline. Southern Company ($26.54 billion), Palisades ($1.52 billion), Crane ($1 billion), and the SPARK program ($1.9 billion) define the new lending priorities: baseload generation, nuclear, and grid hardening. ABC provides bridge financing to energy developers positioning for DOE credit.