Federal Shutdown Threat Puts Repossession Moratorium Back on the Radar

Senate Moves Toward Funding Deal as Nevada Moratorium Once Again Looms

For the repossession industry, a federal government shutdown carries more than political consequences. Nevada law can prohibit certain vehicle repossessions during a qualifying shutdown and for 30 days afterward. With the Senate moving toward a temporary funding deal, the industry has another reason to watch Washington closely.

8.7.26: Auto Finance Update

Senate Close to Passing CR to Avoid Shutdown, FY27 Bills Delayed

Two weeks ago, the House of Representatives passed a continuing resolution (CR) funding the government through December 4^th. As a reminder, a continuing resolution extends FY26 spending levels and provisions for a temporary period while Congress works on a full spending deal for FY27. Following passage, the House recessed for a five-week August break.

Since that time, the Senate has remained in session trying to pass a CR of its own and other matters. On Sunday, top Senate Republicans and Democrats released a negotiated a CR which would go through December 11^th. Unlike the House-version, the Senate-version of the CR includes dozens of anomalies, which are designations providing extra funding for emergency items, to the House-passed bill.

Key health care anomalies include:

In addition to dozens of anomalies, the Senate CR includes several policy provisions. Most notably, Section 157 of the CR delays implementation of the Office of Management and Budget’s “Regulation on Federal Financial Assistance.” That regulation, set to take effect October 1^st, significantly reforms how federal agencies solicit, review, approve, and administer federal grants.

To many critics, it grants the executive branch authority to reject or terminate grants based on political concerns. The CR delays implementation of the regulation until December 11^th. Congress will continue to debate this matter.

Another important anomaly delays the prohibition on the sale of hemp and hemp-cannabinoid products at retail stores from going into effect on November 12^th to December 11^th. That provision has many senators split, particularly within the Republican Conference. Attorneys general from 34 states wrote Congress asking the upper body to remove that anomaly, claiming it threatens public safety and human health.

The Senate voted 89-4 on the motion to proceed the CR, a strong first vote suggesting the bill is likely to pass. However, getting to final passage is a bumpy road for Senate leaders. Some Republicans are demanding an amendment to remove the hemp sales delay, and others want to add the SAVE Act which would reform federal voter registration laws and election laws.

Senate leadership is working on a time agreement to allow certain amendment votes. Without a time agreement on the hemp issue and possibly some other amendments heretofore unknown, the Senate likely can’t fast-track the CR and will have to “run the clock” on the CR, meaning final passage might not occur until late Friday or Saturday.

Once it passes the Senate, the House outlook is not completely known. Top Democratic appropriator Rep. Rosa DeLauro (D-CT) said the Senate CR is a “clear improvement” over the prior House bill, but she wants to focus on passing FY27 appropriations bills.

Additionally, the House would not address the Senate-CR until September. August often is a pivotal month in which surprise legislative matters reach national attention and change congress’s plans. Though the Senate CR is well-positioned to pass the House in September, we are taking that with a grain of salt.

Meanwhile, the Senate Appropriations Committee had previously planned to unveil 11 of their 12 FY27 regular appropriations bills before they recess. This would give the world a glimpse into what Senate republican’s position would be.

However, Senate Majority Leader John Thune (R-SD) is concerned the FY27 bills could complicate passage of the continuing resolution, and directed the committee to refrain from releasing those bills (though we hear rumors they may release the Defense Appropriations Act). As of press time, it is likely they will not be published until September.

Attorney General Nomination Advanced

In recent weeks, the acting Attorney General Todd Blanche’s nomination to be permanent Attorney General faced several setbacks. Senators John Cornyn (R-TX) and Thom Tillis (R-NC) publicly expressed some-level of opposition to the nomination based on Blanche’s close ties to President Trump and his role in developing the “Anti-Weaponization Fund” to compensate January 6^th rioters. The Senate Judiciary Committee had planned to vote on his nomination last week, but delayed the vote. This week, Blanche issued a letter which he says would block the Ant-Weaponization Fund. That was enough to get Cornyn and Tillis to support Blanche’s nomination in committee. The Judiciary Committee advanced his nomination to the full Senate on a 12-10 vote.

When Senators Susan Collins (R-ME) and Lisa Murkowski (R-AK) said she would oppose Blanche’s nomination, combined with the absence of Senator Mitch McConnell, Blanche’s nomination looked to be in question. However, Senator Bill Cassidy (R-LA) announced he would support Blanche’s nomination. The vote could come as early as tonight.

The attorney general has significant power in shaping federal efforts to address antitrust policy.

Industry Note: Nevada recovery agencies and creditors should be aware of NRS 482.5165, which can restrict vehicle repossessions during a qualifying government shutdown and for 30 days afterward. CURepossession previously examined the law and its potential compliance implications.

WHO IS REPO ALLIANCE?

Repo Alliance Washington Update: The Week That Shaped Auto Finance – Repo Alliance Washington Update: The Week That Shaped Auto Finance – Repo Alliance Washington Update: The Week That Shaped Auto Finance

How and when was the group formed?

The initiative started several weeks ago with an invitation from ARA to all National and State Associations and other major industry leaders.

Is the Repo Alliance another association?

NO! The Repo Alliance is a collaborative effort of the groups which decided to answer the call and develop a fundraising program to further the interests of OUR industry and provide a voice at both National and State levels.

Which organizations came together?

American Recovery Association (ARA), the California Association of Licensed Repossessors (CALR), Texas Accredited Repossession Professionals (Texas ARP), and Harding Brooks Insurance.

How do you contribute?

A Square account has been established.
Click here to donate through Square.
Champion, Promote and Spread the word about this industry initiative!

Can I use any other method to contribute?

YES, you can mail a check, payable to Repo Alliance at 1400 Corporate Dr., Suite 175, Irving, TX, 75038.

Will funding reports and expenditures be available for review?

YES, this initiative will be completely transparent on monies raised with information available on the website.
One hundred percent of all monies raised will be used to pay for lobbying efforts. Everyone involved other than the lobbyist is a volunteer.

Why hire a dedicated lobbyist instead of just working with other lobbying groups?

We are working with other industry lobbyist groups but have realized without OUR OWN VOICE, we would be trusting the future of the Recovery Industry to the priorities of others. Riding the coattails of these other groups, puts our agenda as simply an afterthought.

What are the GOALS?

Change the negative, reputational image of the Recovery Industry.
Educate legislatures of the vital role we play.
Fight against language in bills or guidance from agencies that would decimate the recovery industry.

Contact Us

info@RepoAlliance.com

833-737-6255

833-REPOALL

Related:

Federal Government Shutdown Triggers Repossession Moratorium!

Repo Alliance Washington Update: The Week That Shaped Auto Finance

Washington Shifts the Playing Field for Auto Finance

Washington Gridlock Meets Financial Data Reform

The Policy Changes That Could Shape Tomorrow’s Repossession Market

When the Watchdog Leaves: What a Smaller CFPB Could Mean for Repossession

Repo Alliance – Washington Shifts Could Reshape Repo Volume and Compliance Risk

Washington in Motion: What New Federal Actions Mean for Auto Finance and Repossession

Repo Alliance – This Week in Washington – March 2026

The Repo Alliance: Giving a Voice to a ‘Ghost’ Industry in Washington

Repo Alliance Progress & Updates from May DC Meeting

Repo Alliance – Let’s Not Lose our Minds

How Does the “One Big Beautiful Bill Act” Affect the Repo Industry?

Federal Shutdown Threat Puts Repossession Moratorium Back on the Radar – Federal Shutdown Threat Puts Repossession Moratorium Back on the Radar – Federal Shutdown Threat Puts Repossession Moratorium Back on the Radar – Federal Shutdown Threat Puts Repossession Moratorium Back on the Radar