US Interim Budget Deadline Just Days Away, Is Another Shutdown Looming?
The current US federal government's continuing resolution (CR) deadline expires on January 30, 2026. If Congress fails to pass a follow-up funding package (either a full budget or a CR extension) before that deadline, a partial government shutdown could recur.
Political pressure has been mounting since President Donald Trump launched his agenda of spending cuts and restructuring, while some members of Congress are pushing for additional provisions in several budget items. In the Senate, the funding process is moving forward: a package of three funding bills has passed with bipartisan support, bringing the total to six of the 12 annual budget bills that have passed both chambers.
However, the path to a "complete resolution" remains far from smooth. One of the most sensitive points is funding for the Department of Homeland Security (DHS), which has been caught up in political tug-of-war, including demands for restrictions and reforms related to immigration enforcement. This has become one of the biggest obstacles in the lead-up to the deadline.
Is another shutdown possible this month? The answer is: it's still possible, as the deadline is at the end of January and negotiations are not yet fully secured. However, signals from Capitol Hill indicate that many parties are unwilling to repeat major disruptions, so the most realistic option if time is running out is a short-term CR extension to "bridge" negotiations.
The impact on the market typically manifests itself in two ways: uncertainty (risk-off) and delays in government data/events if a shutdown occurs. In the coming days, the market will be monitoring whether Congress expedites the passage of the remaining bills or opts for a quicker route by extending temporary funding to keep government operations running.
Source: Newsmaker.id
