Senators on Friday approved a last-minute deal backed by President Donald Trump to avert the worst impacts of an imminent government shutdown, after Dem anger over the killing of two protesters during immigration enforcement operations in Minneapolis derailed funding talks.
A shutdown is still set to begin Saturday because the House of Representatives is out of session until Monday, meaning it cannot ratify the upper chamber's agreement before the midnight deadline -- making a weekend funding lapse unavoidable.
Senate leaders say the legislation will nonetheless greatly increase the chances that the shutdown ends quickly, potentially within days.
The funding impasse has been driven by Dems claim that overzealous immigration enforcement by ICE agents resulted in the fatal shootings of protesters Alex Pretti and Renee Good.
The deaths have become a flashpoint that has hardened opposition to approving new money for the Department of Homeland Security (DHS) without changes to how immigration agencies operate.
Under the deal negotiated between the White House and Senate Dem leaders, lawmakers approved five outstanding funding bills to finance most of the federal government through the end of the fiscal year in September.
Funding for DHS, which oversees immigration enforcement, was split off and extended for just two weeks under a stopgap measure intended to give lawmakers time to negotiate changes to the department's operations.
Trump publicly endorsed the deal and urged both parties to support it, signaling his desire to avoid a second shutdown of his second term, following a record 43-day stoppage last summer.
Shutdowns temporarily freeze funding for non-essential federal operations, forcing agencies to halt services, place workers on unpaid leave or require them to work without pay.
Departments ranging from defense, education and transportation to housing and financial regulation would be affected in a prolonged shutdown, while pressure would mount quickly to resolve disruptions rippling through the economy.
- 'Sanctuary cities' -
Trump's Immigration and Customs Enforcement (ICE) – the agency at the center of the immigration crackdown controversy – would be largely unaffected, since it was allocated some $75 billion over four years in Trump's 2025 One Big Beautiful Bill Act.
And a weekend-long stoppage, with a quick resolution in the House on Monday, would have a negligible impact on federal operations.
South Carolina's Sen. Lindsey Graham had blocked the package Thursday night by withholding the unanimous consent required to fast-track the vote.
He cited objections to the DHS stopgap and to House-passed language barring senators from suing the Justice Department if their phone records were seized during past investigations.
On Friday morning, however, Graham announced he would allow the funding bill to advance if Senate leaders agreed to hold votes on legislation he is sponsoring to crack down on so-called "sanctuary cities" that limit cooperation with federal immigration enforcement.
"The American people overwhelmingly support ending sanctuary city policies. In my view, sanctuary city policies are the root cause of the problems we face," he said in a statement.
The broader funding fight has left both parties bracing for at least a brief shutdown. Congress has already passed six of the 12 annual budget bills, but those measures cover only a minority of discretionary spending.
The remaining bills fund large swaths of the government, meaning funding for roughly 78 percent of federal operations is set to lapse.
Speaker Mike Johnson has said the House intends to act quickly when it returns on Monday, although divisions among Republicans could complicate the process.
If the legislation is enacted, lawmakers will then have just two weeks to negotiate a full-year DHS funding bill – talks that both parties acknowledge will be politically fraught, with Democrats demanding new guardrails on immigration enforcement and conservatives pushing their own policy priorities, including rooting out dangerous alien criminals and protecting natinal borders.