Government Funding Update

February 3, 2026

The government entered a partial shutdown on Saturday amid Democratic pushback on Department of Homeland Security and ICE funding. 

  • To date, six appropriations bills have been passed into law, so this current shutdown is only a partial one compared to the 43-day shutdown in the fall.
  • Agencies and functions covered by the following bills are experiencing a lapse in appropriations. They include:
    • Defense,
    • Homeland Security,
    • Financial Services and General Government Appropriations,
    • Labor-HHS-Education, 
    • National Security-State, and
    • Transportation-HUD.
  • The National Flood Insurance Program (NFIP) has also lapsed as it did in 2025.

Where we stand as of today: Eager to avoid another shutdown, the White House struck a deal with Senate Democrats to temporarily fund DHS at current levels for two weeks while the negotiations play out.

  • Trump has been personally involved in getting the deal passed, and had a White House meeting with two members who had originally expressed that they wouldn’t vote for the bill. 
  • The pair were promised a vote in the Senate on the “SAVE Act” which would require Americans to show proof of citizenship in person to register to vote in federal elections.
  • GOP Reps. Anna Paulina Luna of Florida and Tim Burchett of Tennessee told reporters they will vote "yes" following their meeting at the White House on Monday. 
  • Senate Action: The compromise package passed the Senate on Friday, January 30 by a bipartisan vote of 71-29.

House Action: On the other side of the Capitol, the House needs to take up the new bill, which is proving to be more complicated. 

  • Speaker Mike Johnson only has a one vote margin, and with all Democrats unified in opposition, he can only afford to lose one vote, and not all Republicans are totally on board with the spending package just yet.
  • Minority Leader Hakeem Jeffries was not party to the White House and Senate dealmaking and the Democratic caucus is opposing the measure, which took the expedited suspension vote procedure off the table. 

Speaker Johnson stated on Meet the Press he believes they will get it done: 

“Let’s say I’m confident that we’ll do it at least by Tuesday.” 

Source: CNBC

However, another GOP vote may be holding out. According to CNN, Republican Rep. Byron Donalds of Florida, noted that he would require the voter ID law to be attached to the funding bill in the House package before he could back leadership on a key procedural vote Tuesday.

The bottom line: Trump and Johnson have been effective at passing party-line votes through the House. While Democrats are not expected to join in passing the rule that sets up the final vote, a few moderates may cross the aisle on the final bill. 

Contact James Montfort (jmontfort@crefc.org) with any questions.

Contact 

James Montfort
Manager,
Government Relations
202.448.0857
jmontfort@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2026 CRE Finance Council. All rights reserved.

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