Still stalling? Democrats block funding bill for the second time, plunging the US government shutdown into a deadlock.
2026-02-25 11:33:38
On Tuesday (February 24), local time in the United States, Senate Democrats blocked the Department of Homeland Security (DHS) funding bill for the second time, leading to a partial government shutdown caused by the department's funding shortage, which has now entered its second week, with the two sides deadlocked.
Senators voted 50-45 to advance a Department of Homeland Security funding bill that had already passed the House of Representatives, but it failed to reach the required 60 votes to proceed to substantive debate. This marks the first formal action taken by the Senate on Department of Homeland Security funding since the partial shutdown began on February 14.
White House Press Secretary Carolyn Levitt said Tuesday that President Trump will call on Democrats to agree to restart the Department of Homeland Security's normal operations during his State of the Union address. Trump's State of the Union address is currently underway. However, with lawmakers just returning to Washington from a week-long recess, negotiations between the two sides have almost completely stalled.
Senate Minority Leader Chuck Schumer stated, "All we heard from them was silence, nothing. They weren't negotiating at all; they were just passing documents back and forth without making any substantive changes."
Currently, no formal meeting has been scheduled between congressional leaders and Trump to discuss this funding dispute.
On Wednesday morning Beijing time, US President Trump, in his State of the Union address, again targeted the Democrats, accusing them of causing the partial government shutdown, which resulted in the termination of funding for the Department of Homeland Security. He also criticized their handling of last year's federal government shutdown and demanded the full restoration of funding for the Department of Homeland Security.
The shutdown primarily affected non-immigrant enforcement agencies under the Department of Homeland Security, such as key departments like the Transportation Security Administration (TSA) and the Coast Guard. Immigration enforcement agencies under the Trump administration, such as Immigration and Customs Enforcement (ICE), were not directly impacted because they had already been allocated funds in the bipartisan massive budget bill passed by Republicans last year.
According to three unnamed sources familiar with the matter, the likelihood of reaching an agreement this week to end part of the shutdown is extremely low due to slow progress in negotiations. Democrats insist they will continue to oppose funding for the Department of Homeland Security unless Republicans agree to significant changes to Trump's immigration enforcement strategy. Their demands stem from a strong backlash following the deaths of two U.S. citizens by federal agents in Minneapolis.
Democrats have put forward more than a dozen specific reform demands, including banning federal agents from wearing masks during operations, requiring agents to obtain judicial warrants before searching private property, and conducting independent investigations into agent misconduct. Despite the ongoing shutdown, Democrats believe public opinion is on their side because Trump's hardline immigration policies have sparked widespread controversy and even unrest among some Republican lawmakers.
Democrats submitted a new counter-proposal to the White House last week.
Senate Majority Leader John Thune said on Tuesday that the negotiations have now shifted to a more “informal” mode, with both sides “just going back and forth trying to find a foothold that is acceptable to both sides.”
This budget standoff over immigration enforcement reform highlights the deep divisions between the two parties in the U.S. Congress on homeland security and immigration issues. As the U.S. government shutdown continues, its potential impact on areas such as air travel, border security, and emergency response is increasingly attracting market and public attention.
The government shutdown is a direct manifestation of political dysfunction in the United States, directly weakening market confidence in the dollar. The shutdown, coupled with factors such as the Supreme Court's tariff ruling and expectations of external intervention, further reinforced the bearish sentiment towards the dollar. The dollar index traded in a narrow range around 97.80 during Wednesday's Asian session.
Investors should closely monitor the content of Trump's State of the Union address and subsequent negotiation developments to assess the potential spillover effects of this political event on economic and fiscal stability.
(US Dollar Index Daily Chart, Source: FX678)
At 11:33 Beijing time, the US dollar index is currently at 97.77.
Senators voted 50-45 to advance a Department of Homeland Security funding bill that had already passed the House of Representatives, but it failed to reach the required 60 votes to proceed to substantive debate. This marks the first formal action taken by the Senate on Department of Homeland Security funding since the partial shutdown began on February 14.
Latest statements from the White House and Congress
White House Press Secretary Carolyn Levitt said Tuesday that President Trump will call on Democrats to agree to restart the Department of Homeland Security's normal operations during his State of the Union address. Trump's State of the Union address is currently underway. However, with lawmakers just returning to Washington from a week-long recess, negotiations between the two sides have almost completely stalled.
Senate Minority Leader Chuck Schumer stated, "All we heard from them was silence, nothing. They weren't negotiating at all; they were just passing documents back and forth without making any substantive changes."
Currently, no formal meeting has been scheduled between congressional leaders and Trump to discuss this funding dispute.
On Wednesday morning Beijing time, US President Trump, in his State of the Union address, again targeted the Democrats, accusing them of causing the partial government shutdown, which resulted in the termination of funding for the Department of Homeland Security. He also criticized their handling of last year's federal government shutdown and demanded the full restoration of funding for the Department of Homeland Security.
The impact of the US government shutdown on protected institutions
The shutdown primarily affected non-immigrant enforcement agencies under the Department of Homeland Security, such as key departments like the Transportation Security Administration (TSA) and the Coast Guard. Immigration enforcement agencies under the Trump administration, such as Immigration and Customs Enforcement (ICE), were not directly impacted because they had already been allocated funds in the bipartisan massive budget bill passed by Republicans last year.
Democratic Party's core demands and reform requirements
According to three unnamed sources familiar with the matter, the likelihood of reaching an agreement this week to end part of the shutdown is extremely low due to slow progress in negotiations. Democrats insist they will continue to oppose funding for the Department of Homeland Security unless Republicans agree to significant changes to Trump's immigration enforcement strategy. Their demands stem from a strong backlash following the deaths of two U.S. citizens by federal agents in Minneapolis.
Democrats have put forward more than a dozen specific reform demands, including banning federal agents from wearing masks during operations, requiring agents to obtain judicial warrants before searching private property, and conducting independent investigations into agent misconduct. Despite the ongoing shutdown, Democrats believe public opinion is on their side because Trump's hardline immigration policies have sparked widespread controversy and even unrest among some Republican lawmakers.
Democrats submitted a new counter-proposal to the White House last week.
Republican Response and the Status Quo of Negotiations
Senate Majority Leader John Thune said on Tuesday that the negotiations have now shifted to a more “informal” mode, with both sides “just going back and forth trying to find a foothold that is acceptable to both sides.”
Potential Impacts and Outlook
This budget standoff over immigration enforcement reform highlights the deep divisions between the two parties in the U.S. Congress on homeland security and immigration issues. As the U.S. government shutdown continues, its potential impact on areas such as air travel, border security, and emergency response is increasingly attracting market and public attention.
The government shutdown is a direct manifestation of political dysfunction in the United States, directly weakening market confidence in the dollar. The shutdown, coupled with factors such as the Supreme Court's tariff ruling and expectations of external intervention, further reinforced the bearish sentiment towards the dollar. The dollar index traded in a narrow range around 97.80 during Wednesday's Asian session.
Investors should closely monitor the content of Trump's State of the Union address and subsequent negotiation developments to assess the potential spillover effects of this political event on economic and fiscal stability.
(US Dollar Index Daily Chart, Source: FX678)
At 11:33 Beijing time, the US dollar index is currently at 97.77.
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