U.S. Government Shutdown Fears Ease as Trump Backs Bipartisan Deal

Concerns over another U.S. government shutdown have eased following new developments in the Senate, after President Donald Trump signaled support for a bipartisan funding agreement reached with Democratic lawmakers. The deal aims to keep the federal government funded and avoid another disruptive shutdown, though some uncertainty remains as negotiations continue.

According to reports, Democratic Leader Chuck Schumer’s office confirmed that lawmakers had agreed on a bipartisan funding framework designed to prevent the government from closing again. A key feature of the agreement is that funding for the Department of Homeland Security (DHS) has been separated from the broader government spending bill. This move follows recent discussions between President Trump and Senator Schumer, which were reportedly close to producing a compromise.

President Trump publicly backed the new spending deal negotiated by Senate Republicans and Democrats, stating that it would help avert a shutdown while lawmakers continue debating immigration-related measures. However, he stopped short of declaring the issue fully resolved, noting that a shutdown “could still happen,” highlighting lingering political uncertainty.

The situation is further complicated by questions over whether the House of Representatives will accept the agreement in time. House Speaker Mike Johnson previously indicated that it could be challenging to bring lawmakers back to Washington during their scheduled recess, before the House is set to reconvene on Monday. As a result, there remains a possibility that parts of the federal government could temporarily shut down over the weekend.

Despite the apparent progress in Washington, market sentiment suggests continued concern. On Polymarket, traders have increased their bets on the likelihood of a government shutdown, with odds rising back to 68% after previously dropping to around 40%. This reflects ongoing disagreements, particularly around funding and oversight of Immigration and Customs Enforcement (ICE). Democratic lawmakers are pushing for stricter rules on federal immigration agents, including limits on patrol practices and mandatory use of body cameras.

Meanwhile, legislative activity continues in other areas, with the CLARITY Act advancing as the Senate Agriculture Committee approved its portion of the crypto market regulation bill. However, the legislation is not yet complete, as the Senate Banking Committee still needs to finalize its section before the bill can move forward for a final vote.