The government is once again at risk of partially shutting down as soon as the end of today, pending further negotiations between Senate Republicans and Democrats.
Why another shutdown? Congress is attempting to pass its latest round of government funding bills for FY 2026. The House voted in favor of a spending package last week, but that package was rejected by the Senate 55-45 in an initial vote Thursday.
- If the Senate cannot agree on a funding package by the end of Friday, the government will once again be shutdown.
What’s the holdup? The spending bill includes funding for the Department of Homeland Security – and therefore immigration enforcement. In response to ongoing ICE enforcement actions in Minneapolis, Senate Democrats have refused to support any spending bill that includes funding for DHS, unless the bill also includes a deal for new restrictions on ICE activity.
What’s at stake? The House-passed spending package includes long-awaited PBM reform as well as funding for key agencies such as the Department of Labor and the National Labor Relations Board. A shutdown could imperil operations at such agencies and further delay PBM reform.
- A prolonged shutdown could also jeopardize federal contracts and disrupt operations tied to federal approvals, inspections, and regulatory processes.
What’s next: Senate Democrats and Republicans reached an initial compromise late Thursday, under which funding for DHS would be limited to a two-week stopgap to allow for further negotiations during that time (while the rest of the funding in the package would be approved for the full year).
- However, Sen. Graham (R-SC) – a necessary affirmative vote – withheld his support over an unrelated provision in the House-passed package, complicating overall Senate approval.
- Even if the Senate does vote through the new compromise package, the House will need to approve it as well. That House vote may not happen until Monday, meaning the government is likely to be partially shut down through the weekend.
