BREAKING: US Congress Reaches Agreement, Government Shutdown Averted – But There’s a Small Catch

In a race against time to prevent a US government shutdown, the Senate approved a critical budget package.

The bill, which passed with a vote of 71 to 29, funds most federal agencies until the end of September, but only provides the Department of Homeland Security (DHS) with temporary funding for two weeks.

Voting to Take Place Monday, US Government May Shut Down Over the Weekend

The legislation is the product of a compromise reached between Donald Trump and Democratic leaders in the Senate. The bill is now going to the House of Representatives. House Speaker Mike Johnson stated that they plan to hold a vote on Monday. This timeline means that any potential shutdown that might begin with the depletion of funds on Saturday will be short-lived.

At the request of the Democrats, it was decided to provide temporary funding for DHS for only two weeks. The Democrats are demanding reforms to Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP). These demands arose after two murders committed by DHS agents in Minneapolis, which sparked widespread public outrage.

The temporary funding cut is expected to have limited practical impact because it coincides with the weekend. However, a potential delay in the House of Representatives could push the partial shutdown into next week. In addition to the DHS, the Ministries of Defence, State, Treasury, Transportation, Health and Human Services, and Housing and Urban Development are also among the agencies that may be affected by the temporary funding cut.

Democrats plan to use the next two weeks to negotiate reforms to ICE and CBP. Topics on the table include ending “mobile patrols,” tightening warrant requirements for arrests, creating a binding code of ethics for immigration agents, and mandating identification and body cameras.

*This is not investment advice.