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Partial U.S. Shutdown Likely as DHS Funding Standoff Nears Friday Deadline

Senate Democrats are blocking the Homeland Security bill after the Minneapolis killing of nurse Alex Pretti by federal immigration agents.

Overview

  • Prediction markets put the odds of a partial shutdown around 75%, with some platforms higher, and roughly $13.3 million wagered as the deadline approaches.
  • Six of the twelve annual spending bills are already law, narrowing the scope compared with last year’s full shutdown, and DHS retains about $178 billion in reserves to sustain most operations.
  • The House is on recess, so any Senate changes would require a recall for reapproval, compressing the timeline before funding lapses at 12:01 a.m. ET Saturday.
  • If funding lapses, affected agencies plan furloughs for nonessential staff as essential workers continue without immediate pay, while Social Security and Medicare generally continue.
  • Bitcoin trades near $89,000 and spot ETFs saw about $1.33 billion in weekly outflows, as analysts also note a historical 60% rate of last‑minute shutdown resolutions.