Executive Insights
- Partial government shutdown began at midnight on January 31, 2026.
- The primary cause is a standoff over DHS funding and immigration reform following the Alex Pretti shooting.
- The Senate passed a compromise bill (71-29) on Jan 30, but the House recessed before voting.
- House Speaker Mike Johnson is scheduling a vote for February 3, 2026, to reopen the government.
- The proposed deal includes full-year funding for Defense and Treasury but only a 2-week extension for DHS.
- IRS operations and Social Security payments are unaffected by this lapse.
🚨 Current Status: Partial Shutdown in Effect
Since: Midnight, January 31, 2026
Cause: Dispute over ICE/Border Patrol reforms following the Alex Pretti incident.
Immediate Outlook: The House is scheduled to vote today (Feb 3) on a Senate-passed package that includes a 2-week stopgap for DHS.
Why Did the Government Shut Down in 2026?
While Republicans control the House, Senate, and Presidency in this 119th Congress, the shutdown stems from the Senate’s 60-vote filibuster threshold and deep ideological divides regarding immigration enforcement.
The Trigger: The Alex Pretti Incident
Negotiations for the fiscal year 2026 budget were derailed in late January following the fatal shooting of Alex Pretti and Renee Good by federal agents in Minnesota. This incident galvanized Senate Democrats, led by Minority Leader Chuck Schumer, to block the full-year DHS appropriations bill (H.R. 7147) unless significant reforms to Immigration and Customs Enforcement (ICE) protocols were included.
The Legislative Standoff
The timeline of events leading to the lapse was chaotic:
- Jan 29: Senate fails to advance the original GOP-led funding package (45–55 vote).
- Jan 30: Senate leaders cut a deal to separate the controversial DHS funding from the rest of the budget. They passed a new package (71–29) containing full-year funding for five agencies and a 2-week continuing resolution (CR) for DHS to allow for cooling-off and negotiation.
- The Lapse: The House had already recessed for the weekend before receiving the Senate’s bill. Speaker Mike Johnson scheduled the vote for Monday/Tuesday, guaranteeing a technical lapse in funding starting Jan 31.
What Agencies Are Affected?
Unlike a “full” shutdown, this is a partial lapse because Congress successfully passed appropriations for Agriculture, Veterans Affairs, and the Legislative Branch back in November 2025 following a previous 43-day shutdown. The current lapse impacts the remaining agencies that had been running on a CR that expired January 30.
| Department/Agency | Status (Feb 2026) | Impact |
|---|---|---|
| Department of Defense | Operational (Unpaid) | Active duty troops work without pay; civilian training halted. |
| IRS | OPEN | Funded via Inflation Reduction Act & 2022 legislation; tax season proceeds normally. |
| Homeland Security | Operational (Essential) | Border agents and TSA work without pay; reform negotiations ongoing. |
| Social Security | Unaffected | Checks continue to go out; mandatory spending is not subject to annual appropriations. |
What Happens Next? The February 3rd Vote
Speaker Mike Johnson faces a difficult math problem. He intends to bring the Senate-passed compromise to the floor today. However, conservative hardliners in the House Freedom Caucus have threatened to revolt against any Continuing Resolution for DHS, demanding deeper cuts instead.
The Likely Outcome: To pass the bill and reopen the government, Johnson will likely need significant Democratic support to overcome Republican defections. If passed, the bill will:
- Fully fund the majority of the government through September 30, 2026.
- Kick the DHS fight down the road to mid-February 2026.
President Trump has signaled on Truth Social that he will sign the package if it reaches his desk, stating that “We will get the DHS funding sorted out in two weeks, but we need our Military paid NOW.”
Economic Impact and “Trump Accounts”
Markets have remained jittery but stable. Treasury Secretary Scott Bessent announced that despite the shutdown, the Treasury’s borrowing estimates remain on track. Interestingly, the “One Big Beautiful Bill Act” (OBBBA) passed in mid-2025 created new tax-deferred “Trump Accounts” for children; administration of these accounts has been paused by the Treasury Department until the funding lapse is resolved, causing confusion for financial advisors.
In-Depth Q&A
Q: Is the IRS open during the 2026 government shutdown?
Yes, the IRS remains open. Unlike previous shutdowns, the IRS is utilizing multi-year funding provided by legislation from 2022 and the Inflation Reduction Act to keep operations running normally during the 2026 tax filing season.
Q: Will I get my Social Security check if the government shuts down in 2026?
Yes. Social Security is considered mandatory spending and does not rely on the annual appropriations bills that are currently stalled in Congress. Checks will be issued as scheduled.
Q: Why is the Department of Homeland Security funding stalled?
Senate Democrats blocked the DHS appropriations bill following the shooting of Alex Pretti by federal agents. They are demanding statutory reforms to ICE and Border Patrol conduct before agreeing to full-year funding.
Q: When will the 2026 government shutdown end?
The House is expected to vote on February 3, 2026, on a Senate-passed bill. If successful, most agencies will reopen immediately, but DHS funding will only be extended for two weeks, creating another potential deadline in mid-February.
