US government shutdown: Government Shutdown update 2026: How the next closure could be very different, and why Americans may feel it faster

Senate Minority Leader Chuck Schumer said Democrats will stop the government funding bill if money is given to the Department of Homeland Security (DHS). DHS controls agencies such as border police and immigration officers. These institutions are very important regarding immigration. Democrats say they are concerned about how the government enforces immigration laws.

DHS funding struggle

Republicans say the Department of Homeland Security (DHS) should be funded to protect the border and keep the government running. But Senate Democratic leader Chuck Schumer has publicly said Democrats will not advance the bill if it remains in DHS funding. If the closure occurs, it would be the second in less than three months. This could again hurt the US economy. Federal workers may not receive their salaries on time, and many important government services may be suspended.
If Congress doesn’t pass a funding bill by Friday, many government agencies will be forced to close. A deal seems unlikely as the House of Representatives is in recess and will only return on February 2, according to Investopedia. Betting markets are signaling serious concerns about the shutdown. The probability of Polymarket closing in January rose from just 9% on Friday to 80% on Monday. Economists and market analysts are also preparing for the shutdown.

Experts expect partial closure

Stifel Washington Chief Policy Strategist Brian Gardner said the situation was changing rapidly after the weekend’s events, according to a CNBC interview cited by Investopedia. Gardner previously thought the government would stay open, but now says a partial shutdown is likely. This closure will not be the same as in October and November.

Some major ministries, such as the Ministry of Agriculture and the Ministry of Internal Affairs, will remain open because their money has already been approved by both parties. But many other government offices that were closed last time may close again. This includes the Bureau of Labor Statistics, which shares important data about jobs, prices and the economy.
Economists at Wells Fargo Securities say institutions that could be shut down control about 90% of government spending. As before, the shutdown could seriously damage families and the economy. In the last shutdown, many services were stopped and many public employees were sent home. The 43-day long lockdown in October and November also caused unemployment to rise for a short time. This shutdown likely slowed economic growth and delayed or distorted important economic data.

FAQ

Q1. Why the US government may shut down in 2026

Because Democrats and Republicans cannot agree on including Department of Homeland Security funding in the government budget bill.

Q2. How will the US government shutdown affect people?

It could delay paychecks for federal employees, pause services and slow the U.S. economy.