The federal government entered a partial shutdown early Saturday after lawmakers failed to finalize a full-year funding agreement before the deadline, marking the second lapse in federal funding in six months and underscoring the deepening dysfunction on Capitol Hill.

The Office of Management and Budget was expected to begin directing agencies to initiate shutdown procedures shortly after midnight Jan. 31. Unlike the previous shutdown, however, this stoppage affects only portions of the federal government, after Congress managed to approve full-year funding for a limited set of agencies.

Departments that will remain funded include the Department of Agriculture, the legislative branch and the Department of Justice. Most federal agencies, however, are operating without finalized appropriations, leaving large swaths of government activity in limbo as lawmakers scramble to prevent a prolonged disruption.

The breakdown followed Senate Democrats’ decision to abandon a bipartisan funding framework for the remainder of fiscal year 2026, citing fallout from President Donald Trump’s deployment of federal law enforcement to Minneapolis. Federal officers shot and killed two U.S. citizens in separate incidents during protests against Trump’s immigration crackdown, prompting Democrats to demand changes to how immigration enforcement is funded.

Democrats threatened to block a sweeping funding package — covering the departments of Defense, Labor, Health and Human Services, Transportation and others — unless funding for the Department of Homeland Security was removed.

The standoff raises the prospect of significant disruptions, including airline delays, missed paychecks for active-duty troops and potential limits on some Medicaid and Medicare services.

After days of negotiations, Senate Democrats reached a narrower agreement with the White House that would fund nearly all federal agencies through Sept. 30, while carving out DHS for separate treatment. Under the deal, DHS would receive a two-week extension at current funding levels, giving lawmakers time to negotiate stricter oversight and guardrails for immigration enforcement operations.

Trump praised the agreement, which he negotiated with Senate Minority Leader Chuck Schumer, urging Republicans to back the compromise. In a post on Truth Social, the president warned that “the only thing that can slow our Country down is another long and damaging Government Shutdown.”

The compromise, however, deepened rifts within the Republican conference. Several GOP senators were already unhappy with the original funding package, particularly over billions of dollars in earmarks. Tensions escalated further over a House-added provision allowing senators to sue for up to $500,000 if their phone records were subpoenaed by former special counsel Jack Smith.

Sen. Lindsey Graham openly vented his frustration at House leadership. “You jammed me, Speaker Johnson. I won’t forget this,” Graham said, addressing House Speaker Mike Johnson. “If you think I’m going to give up on this, you really don’t know me.”

Despite the internal backlash, Senate Majority Leader John Thune managed to advance the revised funding plan with Democratic support, sending the legislation back to the House.

The House had previously passed the original funding package that Democrats later rejected, meaning lawmakers will now need to vote again on the Senate-modified version.

How long the partial shutdown lasts will depend largely on Johnson’s ability to rally both Republicans and Democrats around the revised deal when the House reconvenes next week.

Until then, federal agencies remain in a holding pattern — and Washington faces yet another test of whether it can govern itself under pressure.

(YWN World Headquarters – NYC)