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 closure as early as just after midnight on January 31. Unlike last time, however, the government is only going into a partial shutdown this weekend.

This is because Congress was able to pass legislation fully funding some areas – the Department of Agriculture, the Legislature and the Department of Justice, for example – while the majority of federal spending still has not been fixed.

Senate Democrats backed away from a bipartisan deal to fully fund the federal government for the remainder of fiscal 2026, amid fallout from President Donald Trump’s federal law enforcement ramp-up in Minneapolis.

Graham blocks Trump-backed spending plan, calls it a ‘bad deal’ as shutdown approaches

The government is partially paralyzed after Congress failed to pass a deal on federal funding in time for the Jan. 30 deadline. (Kevin Carter/Getty Images; Fox News Graphic)

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

That means a prolonged shutdown could fuel airline delays, risk active-duty troops losing paychecks and even limit some Medicaid and Medicare services.

Senate Democrats reached a new deal with the White House that would fund everything except DHS through Sept. 30, accounting for the majority of federal spending. DHS would continue operating with a two-week extension of current spending levels to give Congress time to find a compromise that would include stronger safeguards for immigration enforcement agencies under the department’s purview.

Senate Minority Leader Chuck Schumer, D-N.Y., and House Minority Leader Hakeem Jeffries, D-N.Y., hold a joint news conference at the U.S. Capitol on January 8, 2026. (Bill Clark/CQ Roll Call, Inc. via Getty Images)

President Donald Trump praised the funding truce, which he reached with Senate Minority Leader Chuck Schumer, D-N.Y., in an article on Truth Social. He urged Republicans to support him and warned that “the only thing that can slow down our country is another long and damaging government shutdown.”

Still, it was a bitter pill for some Senate Republicans who were already frustrated with the underlying initial package. A handful were angry at the billions of dollars earmarked for the legislation.

And Sen. Lindsey Graham, R-S.C., was furious over the House’s inclusion of a provision that would allow senators to sue for up to $500,000 if their phone records were subpoenaed by former special counsel Jack Smith.

DEMS DHS CLOSURE THREAT WOULD HIT FEMA, TSA WHILE IMMIGRATION FUNDING REMAINS INTACT

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

“You cornered me, President Johnson. I won’t forget that,” Graham said. “I have a lot of good friends at Home. If you think I’m going to give up, you really don’t know me.”

Senate Majority Leader John Thune, R-S.D., successfully suppressed opposition and pushed the amended package forward with help from Senate Democrats. Even though the deal passed the Senate, it still needs to be considered in the House.

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The House passed the original federal funding plan that Democrats scrapped in late January but must vote on again after the Senate’s changes.

That means the length of that shutdown will depend on how long it takes House Speaker Mike Johnson, R-La., to bring Republicans and Democrats together around the legislation next week.