While I do agree straw is best, if I couldn’t get nice clean straw, I would bed on grass hay before I’d use shavings with a newborn. Lots of TB farms will foal out on straw, but switch to grass bedding after a week or two because it’s cheaper and works just as well. Yes, some horses eat it…but if you have quality alfalfa in the corner, they won’t touch much of the pooped-on grass at their feet.
Grass is more absorbent than straw. Real grass bedding-- basically just overripe hay, not much nutritional quality, and/or has been bleached and rained on (but then dried)-- is great stuff. We baled thousands of bales for KY TB farms the last few years. They just let their pastures grow out and get ripe; cut it, ideally let it get rained on once, dry out to a crisp, and bale it. It’s not very tasty, but certainly won’t hurt horses if they choose to nibble.
If you can’t find anyone to custom bale your own, see if anyone is selling last year’s hay for cheap. So long as it isn’t moldy or full of bad weeds (thorns, etc) it makes fine bedding. Grass does compact and press down more than straw, so you may need to use more to make it fluffy. Around central KY, it costs about $2.50-$3.00 a bale, so it’s affordable.
If bedded well, I don’t find straw or grass nearly as slippery as shavings. Straw or grass will “mat” together to create a layer on top of the floor, usually with the absorbent chaffy pieces at the bottom to soak up pee. Even when wet, this layer usually holds together as foals struggle to get up and down, even on top of mats.
I would not like to use shavings for a newborn. Bedding always ends up in their mouths and nostrils as they try to stand and fall and suck on everything. You’ve spent so much in stud fees and vet bills, what’s a little more to pay for good straw or grass bedding to ensure the health of your investment?