Government shutdown begins as Congress barrels toward spending deal

The federal government is shutting down for the second time in six months after Congress failed to reach an agreement on the annual budget in time.

The Office of Management and Budget (OMB) is expected to notify federal agencies to begin preparations for the shutdown shortly after midnight on January 31. But unlike last time, the government is only entering into a partial shutdown this weekend.

That’s because Congress can pass legislation that fully funds some areas (e.g., the Department of Agriculture, the legislature, and the Department of Justice), while the majority of federal spending has yet to be determined.

Senate Democrats have pulled out of a bipartisan agreement to fully fund the federal government for the remainder of fiscal year 2026 amid fallout from President Donald Trump’s increased federal law enforcement in Minneapolis.

GRAHAM BLOCKS TRUMP-SUPPORTED SPENDING PLAN, CALLS IT A ‘BAD DEAL’ AS SHUTDOWN NEAR

Federal officers shot and killed two U.S. citizens in the Midwestern city during separate demonstrations against Trump’s crackdown on immigration. In response, Democrats threatened to suspend a massive federal funding bill that includes dollars for War, Labor, Health and Human Services, Transportation, and other departments unless funding for the Department of Homeland Security (DHS) is cut.

That means a prolonged shutdown could increase airline delays, put active-duty troops at risk of missing paychecks, and even limit some Medicaid and Medicare services.

Senate Democrats reached a new deal with the White House that would fund all but DHS, which makes up the majority of federal spending, through Sept. 30. DHS will continue its work, with a two-week extension of current spending levels to give Congress time to reach a compromise that includes tougher security measures on immigration enforcement agencies under the department’s jurisdiction.

Senate Minority Leader Chuck Schumer (DY) and House Minority Leader Hakeem Jeffries (DY) held a joint press conference at the U.S. Capitol on January 8, 2026. (Bill Clark/CQ Polling, Inc. via Getty Images)

President Donald Trump praised the funding truce he signed with Senate Minority Leader Chuck Schumer (DY) in a post on Truth Social. He urged Republicans to support it and warned that “the only thing that could slow our Country down is another long and damaging Government Shutdown.”

Still, it was a bitter pill to swallow for some Senate Republicans already fed up with the original underlying package. A handful of people were outraged by the billions of dollars in earmarks added to the bill.

And Sen. Lindsey Graham, R-S.C., was outraged that the House included a provision that would have allowed senators to sue for up to $500,000 if phone records were subpoenaed by former Special Prosecutor Jack Smith.

DEMS’ DHS CLOSURE THREAT WILL HIT FEMA, TSA, IMMIGRATION FUNDS WILL REMAIN HEALTHY

Senator Lindsey Graham, R.S.C. He speaks at a press conference at the U.S. Capitol on July 31, 2024 in Washington, DC. (Kent Nishimura/Getty Images)

“You cornered me, Speaker Johnson. I won’t forget it,” Graham said. “I have a lot of good friends in the House. If you think I’m going to give this up, you don’t really know me.”

Senate Majority Leader John Thune (R.S.D.), with the help of Senate Democrats, was able to quell opposition and advance the amended package. Although the agreement passed the Senate, it still needs to be considered in the House.

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The House of Representatives passed the original federal funding plan that Democrats abandoned in late January, but a new vote is required following changes in the Senate.

That means the length of this shutdown will depend on how long it takes House Speaker Mike Johnson (R-La.) to rally Republicans and Democrats around legislation next week.