U.S. Congressional Update

In last month’s update, we suggested that there was a strong possibility of a partial government shutdown as a result of the killings of two American citizens by federal immigration agents. And sure enough, that is exactly where we are today.

Earlier this month, the United States Congress approved a package of appropriations bill funding a range of government agencies and programs for the remainder of fiscal year 2026, along with a short-term continuing resolution (CR) for the Department of Homeland Security (DHS).

The idea was to use the two weeks provided by the CR for Democrats and Republicans to negotiate an agreement to address the controversial tactics employed by Immigrations and Customs Enforcement (ICE) and Customs and Border Patrol (CPB) agents in Minneapolis and other cities.

House and Senate Democrats released a list of 10 key reforms—including a requirement for a judicial warrant to enter private property, a ban on face masks, and the mandatory use of body cams – and soon after sent a specific legislative proposal to the White House.

On February 9, the White House responded with a counterproposal that Democrats characterized as inadequate. Senate Democrats—trying to keep up the pressure on the Administration to make further concessions—blocked efforts to pass another short-term CR for DHS. As a result, the agency ran out of funding at midnight on February 13. Since then, negotiations between the two sides have continued.

It is important to note that the shutdown will not directly impact the operations of ICE and CPB since those agencies received significant supplemental funding in the Republican reconciliation bill—otherwise known as the One Big Beautiful Bill Act—was signed into law by the President last July. It will, however, impact other agencies under the DHS umbrella, including the Federal Emergency Management Agency (FEMA), the Transportation Security Administration (TSA), and the Coast Guard.

With public opinion seemingly on their side—polling indicates that the American people believe ICE and CPB have gone too far and broadly support changes to their tactics—it is hard to see Democrats “folding” on their demands anytime soon.  At the same time, with some of the initial furor over the killings in Minneapolis having subsided, Republicans feel increasingly emboldened to push back on the Democrats’ demands.

As this drama continues to play out, Congress will soon gear up for the fiscal 2027 appropriations process, which—given the upcoming midterm elections—promises to be even more challenging than this year.