Capitol Insights: WOTC Advocacy Continues Amid Federal Government Shutdown
Each week, Capitol Insights highlights key federal updates shaping workforce and tax credit policy. These updates focus on legislative movements that may impact employers, employees, and the future of the Work Opportunity Tax Credit (WOTC).
Last Week’s Update
In last week’s Insight, we covered the start of the federal government shutdown after Congress was unable to reach a funding agreement and highlighted how bipartisanship remains key to resolving the standstill. Read Week 4 here .
At a Glance:
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The federal government remains shut down due to a funding impasse.
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Despite the closure, WOTC advocacy continues, with meetings scheduled for October 21.
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Discussions include leading sponsors: Reps. Smucker and Horsford, and Sens. Cassidy and Hassan.
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Lawmakers are considering a bipartisan year-end tax and healthcare package.
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A long-term WOTC extension remains a key priority within potential tax extenders.
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The shutdown has now lasted 20 days, marking the longest in U.S. history.
Although the federal government remains shut down due to a funding dispute, many Congressional offices, particularly in the Senate, remain operational even as broader federal activities have paused.
Advocacy efforts around the Work Opportunity Tax Credit (WOTC) program are moving forward. Stakeholders are scheduled to meet with key lawmakers on Tuesday, October 21. These meetings include discussions with WOTC’s top sponsors: Representatives Lloyd Smucker and Steven Horsford, as well as Senators Bill Cassidy and Maggie Hassan.
The goal is to build support for program improvements and a long-term extension.
Tax and Healthcare Package in Discussion
As lawmakers work toward resolving the shutdown, conversations are underway about a legislative package to carry through the remainder of the year. A bipartisan tax and healthcare bill is expected to be part of this package. Approximately thirty tax extenders are expected to be part of the considerations.
Among these, WOTC stands out as a leading provision due to its strong bipartisan support. Its renewal has historically received strong backing across both chambers, and advocates remain optimistic that it will be included once negotiations resume. Lead sponsors are currently developing a new version of the legislation that includes enhancements and a multi-year extension.
Longest Federal Shutdown in U.S. History
While there are indications that lawmakers are discussing potential solutions to end the shutdown, the timeline remains uncertain. At 20 days, this marks the longest full shutdown of the federal government in U.S. history. In previous shutdowns, some agencies remained open due to enacted appropriations bills. Lawmakers are in active discussions about possible solutions, but the timeline for reopening the government remains uncertain.
Outlook
Even amid the shutdown, momentum around WOTC advocacy remains strong. Meetings with key sponsors signal continued bipartisan support and reinforce WOTC's role as a cornerstone of employer-based tax policy.
As negotiations over the year-end package progress, the WOTC community continues to emphasize the program's proven track record of helping businesses grow while expanding access to employment opportunities for those who need them most.
Stay tuned for more updates as WOTC advocacy efforts continue to build momentum.
