Senate prepares for a crucial vote as lawmakers work toward an agreement to prevent a government shutdown

Progress Toward Averting Government Shutdown

Efforts between Congress and the White House are showing signs of progress toward reaching an agreement that would prevent a prolonged partial government shutdown and sidestep potentially severe economic consequences if no action is taken.

Senate Majority Leader John Thune expressed optimism on Thursday, telling reporters that negotiations are "moving in the right direction."

At the White House, President Trump echoed this sentiment, stating that a deal is "nearing completion" and emphasizing a commitment to working cooperatively with Democrats.

According to several sources, the emerging agreement could enable lawmakers to fully fund approximately 96% of federal operations and allow the Senate to approve five previously negotiated spending bills by early next week.

However, funding for the Department of Homeland Security (DHS) remains a separate and contentious issue.

As reported by , the White House has played a pivotal role in ongoing discussions with Democratic leader Sen. Chuck Schumer, as both parties seek to avoid a lengthy government halt.

Photo: ASSOCIATED PRESS

Despite the progress, the agreement is not finalized, and the approval process in both chambers of Congress could be challenging, even if President Trump ultimately supports the compromise. With the House not set to reconvene until next week, a brief shutdown remains a possibility.

The Senate is expected to vote on a package of six appropriations bills later today, with a proposal to combine five of them and address DHS funding separately.

The Department of Homeland Security oversees agencies such as Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP), both of which are at the center of ongoing debates.

Key Spending Bills Ready for Approval

If a breakthrough is achieved, critical government agencies that impact financial markets—including the Bureau of Labor Statistics, Federal Aviation Administration, and Internal Revenue Service—would continue to operate with minimal interruption.

Funding for the Pentagon, State Department, and major departments like Health & Human Services and Education would also be secured if the remaining bills move forward.

Sen. Schumer outlined the Democratic stance Thursday, stating, "Democrats are prepared to pass five bipartisan funding bills in the Senate today," but noted that the DHS bill "still requires significant work."

Ongoing Negotiations Over DHS Funding

Democratic lawmakers are pushing for new requirements, such as warrants for certain immigration actions, mandatory use of body cameras, and possibly prohibiting ICE agents from wearing masks.

Sen. Thune acknowledged these requests, saying there is "room to discuss and negotiate" some of the proposed measures.

The Transportation Security Administration (TSA), which falls under DHS, could also face funding uncertainty even if most of the government is funded. TSA agents have previously been required to work without immediate pay during funding gaps.

Negotiations remain fluid and have not been officially confirmed. The talks follow President Trump's recent comments about easing tensions over immigration enforcement in Minnesota, where a deadly incident last weekend has contributed to the current legislative impasse.

Photo: Chip Somodevilla via Getty Images

Some parts of the federal government have already secured funding and will continue to operate regardless of the outcome.

Departments such as Commerce, which releases key economic data, and Agriculture, which manages food assistance programs, have had their budgets finalized in recent months.

In total, twelve annual appropriations bills are required to fully fund the federal government, and six have already received presidential approval.

Ben Werschkul reports from Washington for Yahoo Finance.