Washington D.C. – Despite the ongoing government shutdown, the U.S. Senate has confirmed Jonathan McKernan as Under Secretary for Domestic Finance at the Department of the Treasury. The confirmation vote, held on Tuesday, passed with a narrow margin of 51-47.

The government shutdown, now in its eighth day, continues to stall legislative progress as Democrats and Republicans remain at an impasse. The Senate failed for the sixth time on Wednesday to advance funding bills to end the shutdown, highlighting the deep divisions between the parties.

McKernan, nominated by President Trump in June, will serve under Secretary of the Treasury Scott Bessent. Bessent has lauded McKernan as an "ideal leader" who "will play an instrumental role in strengthening our economy by clawing back the government overreach and excess that defined the previous administration". McKernan himself has stated he will "champion reforms that foster growth, both within and outside our financial system".

The confirmation comes as approximately 750,000 federal workers face furlough, and a dispute has emerged regarding back pay for these workers. A White House memo circulating suggests that furloughed workers may not be guaranteed compensation for the time they are not working, sparking pushback from lawmakers who believe workers should be paid. President Trump has said that "most" federal workers will get back pay, but some may not qualify, without elaborating on the reasons why.

The partisan standoff that has triggered the government shutdown revolves around healthcare spending, with Democrats pushing to extend Affordable Care Act tax credits as part of any deal to reopen the government. Republicans have rejected discussing healthcare until after the government is funded.

The shutdown has led to the closure or curtailment of operations at federal offices, national parks, and other government services. Signs of strain are mounting, with reports of staffing shortages at airports and air traffic control centers.

Before his confirmation, McKernan served as a board member at the Federal Deposit Insurance Corporation (FDIC). As Under Secretary for Domestic Finance, McKernan will oversee financial markets and advise top officials on the financial system and other economic matters. He has previously expressed concerns about overregulation and "crypto debanking,". In the past, he has questioned whether the U.S. banking system can integrate with cryptocurrency.

While Congress can continue to confirm nominees and pass legislation during the shutdown, the process has slowed considerably. The shutdown is also delaying approvals for exchange-traded funds at the Securities and Exchange Commission, and bipartisan support will be needed to advance key bills, such as market structure legislation for digital assets.

In related news, the Senate also confirmed Brian Morrissey as General Counsel for the Treasury Department as part of a combined confirmation of 108 nominees to various roles.