Is the government going to shut down? ICE funding dispute stalls talks ahead of Friday deadline

WASHINGTON, D.C. - With a government funding deadline approaching, Congress has not yet reached an agreement to keep federal agencies fully funded, raising the possibility of a partial government shutdown if talks do not produce a deal in time.

What we know:

Current government funding is set to expire at midnight Friday, and lawmakers have not advanced a deal to extend it.

A key procedural vote in the Senate to move forward with a government funding package did not receive enough support to advance, largely because of disagreements over how the Department of Homeland Security, and specifically Immigration and Customs Enforcement (ICE), should be funded and overseen.

Because most spending legislation in the Senate requires 60 votes to advance, bipartisan support is necessary. Senate Democrats have withheld support for the current package, citing concerns about ICE enforcement practices and oversight.

Why ICE is at the center of the dispute

At the heart of the standoff is funding for DHS agencies, including ICE and Customs and Border Protection, according to reporting by Politico. 

Senate Democrats say they will not support a funding package that includes DHS money unless it is paired with new accountability and oversight measures for ICE, following recent controversial enforcement actions and fatal officer-involved shootings involving federal immigration agents.

Proposed changes include requirements related to agent identification, use-of-force standards, body cameras, and limits on masked operations. Democrats argue these reforms are necessary to ensure transparency and public trust.

Republicans oppose tying policy changes to funding bills, arguing that DHS and ICE should be funded without conditions to avoid a shutdown.

Why is this holding up the entire government budget?

While the dispute centers on DHS and ICE, the funding package in question is part of a broader set of bills needed to keep large portions of the federal government operating.

Without Senate agreement on DHS funding, lawmakers cannot move forward with the overall spending plan, increasing the risk that funding for other agencies could lapse.

The House has already passed its version of the funding bills, but the Senate has not cleared them.

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The backstory:

The last federal government shutdown led to widespread disruptions, including furloughs for thousands of federal workers and delayed services across multiple agencies. National parks and museums closed, some federal offices halted routine operations, and workers missed paychecks until funding was restored.

While past shutdowns have eventually ended with back pay approved for furloughed employees, the interruptions created financial strain for workers and uncertainty for agencies, particularly during longer shutdowns. Lawmakers from both parties have cited those impacts as a reason to avoid another lapse in funding.

What happens if there is a shutdown

If current funding expires without a replacement:

• Some non-essential federal employees could be furloughed.
• Certain government services and administrative functions could be delayed.
• Essential services would continue operating, though often with limited staffing.

While ICE itself may continue operating due to previously approved funding, other DHS components, including agencies involved in transportation security and disaster response, could be affected.

What's next:

Lawmakers still have the option to pass a short-term funding extension, known as a continuing resolution, to avoid an immediate shutdown and buy more time for negotiations.

Leaders from both parties say talks are ongoing, but no agreement has been announced, and the window to act is narrowing.

Why you should care:

A government shutdown can disrupt services, affect federal workers and create uncertainty for agencies and contractors nationwide. While shutdowns are often temporary, even brief lapses in funding can have ripple effects.

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