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Indonesia News Portal for Traders | Financial & Business Updates

27 January 2026 03:46  |

Trump's New Drama: Border Issues Heat Up, Shutdown Could Repeat

Washington is heating up again. The risk of a partial US government shutdown has risen sharply after Senate Democrats announced they would hold up the funding package if it still includes the Department of Homeland Security (DHS) budget—ahead of the funding deadline of Friday, January 30, 2026.

The main trigger was the deadly shooting in Minneapolis. Alex Pretti (37), an ICU nurse at the Minneapolis VA Medical Center, was shot dead by Border Patrol agents on Saturday. His family and residents disputed the narrative of government officials who called him a "domestic terrorist," and highlighted a video they deemed inconsistent with official claims.

On Capitol Hill, Chuck Schumer stated that Democrats would not provide the necessary votes to pass the Senate if DHS funding remained in the package. They are pushing for a split package: the non-DHS portion goes first, while the DHS portion is rewritten with the safeguards and reforms they are demanding.

The problem was that the bill being pursued at the time contained six major funding items—from Defense, Labor/HHS/Education, to Transportation/HUD, State, Treasury, and DHS. Once one section became hostage, the entire package was dragged down.

If the deadlock persisted and funding passed January 30th, the threat of a shutdown could be felt immediately in public services and the economy. Some of the impacts that often arise during a shutdown include:

The IRS risks slowdowns during tax season, which can delay service and refund processing (depending on operational scenarios).

Government economic data could be disrupted or delayed (previous shutdowns have created a "data fog" for policymakers).

The SBA typically halts many core loan processes during a shutdown, potentially delaying approvals.

On the other hand, funding and operations for immigration enforcement tend to have "continue running" channels for essential activities (although the mechanisms can vary between agencies), so the impact is not always symmetrical across all institutions.

Source: Newsmaker.id

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