Here is a look at recent tax-related happenings on the Hill, including a few Republican senators voting with Democrats to pass legislation that would effectively nullify tariffs imposed on Brazil and Canada, as well as global reciprocal tariffs.
Lately on the Hill
Shutdown to Set New Record While Trump Pushes Nuclear Option
Come November 5, the government shutdown will enter uncharted territory, surpassing the previous shutdown record that spanned the end of 2018 and into 2019, lasting 34 days. The Senate has attempted to pass the Republican-drafted continuing resolution (CR) 13 times, failing to muster the requisite 60 votes to advance the legislation.
Everett Kelley, president of the American Federation of Government Employees, the country’s largest federal workers union, urged Congress to “reopen the government immediately under a clean continuing resolution that allows continued debate on larger issues.” The union represents more than 800,000 federal employees.1
Democrats are resisting the call to pass a clean CR, continuing to fight for health insurance tax credits. The party has been pressuring President Donald Trump to get involved. “The way to bring it to the end is for President Trump to spend a little less time talking to foreign leaders and a little more time talking to leaders right here to reopen the government,” said Sen. Chris Van Hollen (D-MD).2
Trump offered his solution. “It is now time for the Republicans to play their “TRUMP CARD,” the president wrote on Truth Social, “and go for what is called the Nuclear Option — Get rid of the Filibuster, and get rid of it, NOW!”3
Senate Majority Leader John Thune (R-SD) has so far opposed the idea, as well as House Speaker Mike Johnson (R-LA), who said “It’s not my call, but the filibuster has traditionally been viewed as a very important safeguard. If the shoe was on the other foot, I don’t think our team would like it.”4
The Congressional Budget Office (CBO) released an estimate of the economic effects of the shutdown under three length of time scenarios. Whether the government is closed for four weeks, six weeks, or eight weeks, the CBO projects a $7 billion to $14 billion loss to the economy.
“In CBO’s assessment, the government shutdown will have negative effects on the economy, although many of those effects will be temporary,” according to the report. “Those effects will intensify the longer the shutdown lasts.”
Handful of Senate Republicans Vote to End Tariff Underpinnings
A few Republican senators voted with Democrats to pass legislation that would effectively nullify tariffs imposed on Brazil, Canada, and global reciprocal tariffs by the Trump administration. The measures would terminate the national emergencies declared in the executive orders, which gave basis to the tariffs under the International Emergency Economic Powers Act (IEEPA).
The votes are viewed as symbolic resistance against Trump’s tariff efforts as the House is not expected to vote on the bills, and the president would certainly veto them.5
Trump Concludes Asia Trip With Deals From Japan, Korea, & China
Japan and the U.S. have signed a framework agreement detailing Japan’s earlier $550 billion investment commitment, among other provisions. Japan has agreed to pursue investments in the U.S.’ critical energy infrastructure, artificial intelligence, expanded opportunities for U.S. exports, and more. The parties also agreed to “diversify [their] critical minerals supply chain” and “accelerate AI adoption and innovation.”
The Republic of Korea has agreed to purchase 103 aircraft and engines valued at $36.2 billion and $13.7 billion, respectively. In addition, the countries entered into a Technology Prosperity Deal, emphasizing AI exports, standards, adoption, and innovation, as well as stabilizing and diversifying critical mineral supply chains.
To cap off the trip, the U.S. and China also made a deal. China agreed to suspend export controls on rare earths announced in October, take measures to stop the flow of fentanyl, remove retaliatory tariffs, and purchase at least 12 million metric tons (MMT) of U.S. soybeans in 2025 followed by 25 MMT in 2026, 2027, and 2028.
In turn, the U.S. will lower tariffs by 10% but maintain heightened reciprocal tariffs until November 10, 2026, extend the expiration of certain exclusions, and suspend fees on Chinese shipping vessels for one year.
From the Courts
Supreme Court Hears Arguments on IEEPA Tariffs this Week
The U.S. Supreme Court is slated to hear arguments on November 5 concerning tariffs imposed under IEEPA.6 Eighty minutes have been allotted for argument. Trump had originally planned on attending as the first sitting president to ever do so but recently decided against it to avoid the attention on him.7
The court will consider the following regarding the case Learning Resources v. Trump, 24-128:
“The International Emergency Economic Powers Act, 50 U.S.C. § 1701 et seq. (“IEEPA”) permits the President, upon a valid emergency declaration, to ‘investigate, block during the pendency of an investigation, regulate, direct and compel, nullify, void, prevent or prohibit, any acquisition, holding, withholding, use, transfer, withdrawal, transportation, importation or exportation of, or dealing in, or exercising any right, power, or privilege with respect to, or transactions involving, any property in which any foreign country or a national thereof has any interest[.]’ Id. § l 702(a)(1)(B). Until now, no President in IEEPA’s nearly 50-year history has ever invoked it to impose tariffs—let alone the sweeping worldwide tariffs imposed pursuant to the executive orders challenged here.
The question presented is:
Whether IEEPA authorizes the President to impose tariffs.”
Regarding the case Trump v. V.O.S. Selections, 25-250, the court will consider:
“1. Whether the International Emergency Economic Powers Act (IEEPA), Pub. L. No. 95-223, Tit. II, 91 Stat. 1626, authorizes the tariffs imposed by President Trump pursuant to the national emergencies declared or continued in Proclamation 10,886 and Executive Orders 14,157, 14,193, 14,194, 14,195, and 14,257, as amended.
2. If IEEPA authorizes the tariffs, whether the statute unconstitutionally delegates legislative authority to the President.”
Federal Judge Amplifies Protections Against Layoffs
Judge Susan Illston has taken another step beyond her restraining order against the administration’s federal workforce reductions by granting a preliminary injunction on the grounds that the suing unions will likely succeed in their arguments.8 The preliminary injunction will prolong the moratorium on layoffs until the judge makes a decision, whereas a restraining order typically lasts 14 days.9
From the States
Maine Alerts Taxpayers to Status of OB3 Conformity
Maine has alerted taxpayers concerning its conformity to certain provisions of the One Big Beautiful Bill Act (OB3). Maine currently conforms to federal law as of December 31, 2024, but the state legislature has not yet acted on conforming to the OB3 enacted on July 4, 2025. In the absence of conformity legislation by the state legislature, the state’s tax assessor, under the direction of the governor, may adjust administration of the tax filing season based on federal income tax law changes.
Until the state legislature acts, the state will conform to federal changes from the OB3 relating to qualified disaster losses, qualified farm property, Section 179 expensing, the business interest deduction, and certain research and experimental expenses.
The state will not conform to the increased standard deduction, accelerated depreciation for qualified production property, and the accelerated expensing of research and experimental expenditures incurred after 2021.
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This newsletter features developing content that is subject to change at any time. It does not constitute legal or tax advice. Consult your professional advisors prior to acting on the information set forth herein.
- 1“It’s Past Time to End This Shutdown,” afge.org, October 27, 2025.
- 2“Federal Worker Union Call to End Shutdown Resisted by Democrats,” bloomberglaw.com, October 27, 2025.
- 3Donald J. Trump, truthsocial.com, October 30, 2025.
- 4“Monthslong Government Shutdown Approaches Record Length,” taxnotes.com, November 3, 2025.
- 5“Senate Snubs Trump on Trade in Third Anti-Tariff Vote This Week,” bloomberglaw.com, October 30, 2025.
- 6Trump v. V.O.S. Selections, 25-250 and Learning Resources v. Trump, 24-128.
- 7“Trump Says He Will Not Attend Supreme Court Hearing on Tariffs,” bloomberglaw.com, November 2, 2025.
- 8AFGE v. OMB, N.D. Cal., No. 3:25-cv-08302
- 9“Trump’s Shutdown-Linked Layoffs Blocked by Federal Judge,” bloomberglaw.com, October 28, 2025.