The United States government entered a partial shutdown on Saturday after Congress failed to approve a 2026 budget before the midnight funding deadline on Jan. 30. With no agreement in place, several non-essential government functions have been paused, affecting agencies and services nationwide.
Leaders have signaled that the disruption may be brief. The House of Representatives is expected to act early next week to ratify a Senate-backed funding deal, which extends spending for key federal agencies and includes provisions for the Department of Homeland Security (DHS).
Negotiations stall over controversy
The funding lapse followed a breakdown in talks driven by Democratic concern over the killing of two protesters in Minneapolis by federal immigration agents. The incident sparked demands for changes to DHS operations, stalling negotiations over fresh allocations.
This marks the second government shutdown in just 11 weeks. The previous impasse lasted 43 days, making it the longest in U.S. history. Congressional leaders are continuing efforts to secure enough support to pass the Senate-backed measure when the House reconvenes.
What is a partial government shutdown?
A partial government shutdown happens when Congress does not pass all the funding bills needed to run the federal government. When this occurs, some agencies stop work entirely, while others keep running but in a limited way. The current shutdown came because Congress failed to approve all 12 annual appropriations bills required for the 2026 fiscal year.
Some key agencies that deal with markets and public services are likely to see a temporary pause in operations. These include the Internal Revenue Service (IRS), the Federal Aviation Administration (FAA), and the Bureau of Labor Statistics (BLS).
Funding will also halt for departments such as Health and Human Services, Defense, Education, Transportation, Treasury, and Housing and Urban Development starting at midnight. Agencies affected by the shutdown will place non-essential staff on furlough, meaning they stay home without pay. Critical employees may be asked to continue working but without immediate pay.
For example, the IRS has announced that if the shutdown lasts into next week, all employees will remain on duty through Saturday, February 7, without furlough, because the agency has already started this year’s tax filing season.
