US government enters partial shutdown as House vote delayed until Monday
Nine major agencies affected by funding lapse; Senate passed bipartisan package 71-29 Friday evening
The US government entered a partial shutdown at midnight Saturday as funding expired for nine federal agencies, despite the Senate approving a bipartisan spending package hours earlier. The funding lapse occurred after the House of Representatives adjourned without voting, leaving the legislation until Monday.
The Office of Management and Budget directed affected agencies—including the Departments of Defense, Homeland Security, State, Treasury, Labor, Health and Human Services, Education, Transportation, and Housing and Urban Development—to begin executing orderly shutdown plans, according to CBS News. The Senate had passed the funding package in a 71 to 29 vote Friday evening, but the House's Monday return created a weekend gap in appropriations.
"As it is now clear that Congress will not complete its work before the expiration of appropriations, affected agencies should now execute plans for an orderly shutdown," said Russ Vought, director of the Office of Management and Budget. "It is our hope that this lapse will be short."
The shutdown comes as the US markets navigate heightened uncertainty. Historical analysis suggests that brief government shutdowns typically have limited impact on equity markets, with the S&P 500 posting an average gain of 0.3% during shutdowns since 1990, according to wealth management research. However, extended shutdowns can reduce GDP growth by 0.1% to 0.6% per week and prompt investors to shift toward safe-haven assets.
President Trump urged bipartisan support for the funding deal on social media, writing that "the only thing that can slow our Country down is another long and damaging Government Shutdown" and calling on lawmakers to give "a very much needed Bipartisan 'YES' Vote." The White House has indicated the president would sign the legislation soon after the House acts on Monday.
The Senate package includes five long-term spending bills and a two-week extension for the Department of Homeland Security, allowing additional time for negotiations on immigration enforcement reforms. Senate Majority Leader John Thune and Minority Leader Chuck Schumer are expected to lead discussions on DHS funding, with Schumer warning Democrats will oppose long-term funding without "strong, common-sense legislation that reins in ICE."
Republican Senator Thom Tillis criticized the delay, saying, "We're going to shut down the government because some Republicans refuse to take a win" and warning that "if we have a shutdown, we own it."
The immediate market impact will depend on the duration of the shutdown. Investors are watching for any disruption to economic data releases, which can be delayed during funding lapses, and for signs that political brinkmanship could escalate. With the House scheduled to vote Monday, officials expect the funding gap to be brief, though uncertainty remains until the legislation reaches the president's desk.