The U.S. Senate late Friday approved a bipartisan government funding package aimed at preventing a prolonged shutdown, but a brief lapse in funding now appears unavoidable as the House of Representatives is not expected to vote until Monday.
The measure passed the Senate by a 71–29 vote and has the backing of President Donald Trump. Funding for most federal agencies expires at 12:01 a.m. ET Saturday, raising the likelihood of a short-term shutdown affecting several key departments.
What The Bill Covers — And What It Doesn’t
The legislation funds most federal departments through the end of the fiscal year in September. However, Department of Homeland Security (DHS) funding was carved out of the broader package and extended for only two weeks, reflecting ongoing political friction over immigration enforcement.
Separating DHS funding allows agencies such as the Pentagon, Treasury, Health and Human Services, Transportation, and Labor to avoid being caught up in immigration-related disputes, at least temporarily.
Immigration Enforcement Tensions Drive Deal Structure
Senate Democrats pushed for the DHS carve-out following two high-profile incidents involving federal immigration agents. The most recent involved the fatal shooting of nurse Alex Pretti, a U.S. citizen with no criminal record, in Minneapolis last weekend, which sparked widespread public outrage.
Democrats are demanding new limits on DHS operations, including an end to roving patrols, a ban on face masks for agents, and mandatory use of body cameras.
Even with Senate approval, the bill must still pass the Republican-controlled House, which is out of session until Monday.
This would mark the second government shutdown of Trump’s second term, following the longest government shutdown in U.S. history that began in October last year.
Prediction Markets Expose Limits Of ‘Shutdown’ Bets
The latest funding fight has also highlighted structural limitations in prediction markets such as Polymarket and Kalshi, where traders struggled to express nuanced outcomes.
Because many contracts define a shutdown as a full lapse in government funding, they may not clearly account for brief or partial shutdowns, carve-outs like the two-week DHS extension, or funding gaps resolved within hours or days.
As the funding deadline neared, shutdown-related contracts on prediction markets Polymarket and Kalshi surged, with odds rising over 93% by Friday.
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