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Trump and Democrats reach a two-week temporary agreement, temporarily easing the government shutdown crisis.
Wall Street CN
Wall Street CN
01-30 08:06
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Trump announced a temporary agreement with Senate Democrats to avert a government shutdown, providing two weeks' worth of funding to the Department of Homeland Security to continue negotiations. However, with the House of Representatives adjourned until next week, a brief technical shutdown remains unavoidable.
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Author:Wall Street CN

US President Trump and Senate Democrats reached a temporary agreement to avert a government shutdown, giving both sides more time.

According to reports, Trump announced that an agreement had been reached and urged both parties to vote in favor.A Democratic aide revealed that the agreement would provide the Department of Homeland Security with two weeks' worth of funding to continue negotiations.Senate Democratic and Republican leaders were consulting with their members Thursday evening on the White House agreement.

A key backdrop to these negotiations is the killing of two U.S. citizens by federal agents in Minneapolis this month, an incident that has sparked widespread questioning of immigration enforcement practices. Democrats have proposed a series of restrictions, including requiring law enforcement officers to not wear masks, to wear body cameras, and to obtain a search warrant before entering a residence.

This interim agreement provides a buffer to avoid a government shutdown after Friday, but a brief technical shutdown is still possible if the House of Representatives fails to act in time.

They're trying to get two weeks for negotiations, but a temporary shutdown may be unavoidable.

The core of this interim funding agreement is to buy both sides more time to discuss potential restrictions on immigration enforcement actions.

Earlier this month, federal agents' actions in Minneapolis that resulted in the deaths of two U.S. citizens sparked nationwide protests. Senate Majority Leader Chuck Schumer insisted that Republicans agree to strip long-standing homeland security funding from a massive spending bill to ensure the government continues operating beyond Friday.

Senate Republican Leader Thune previously told reporters that any breakthrough would depend on negotiations between Democrats and the White House.

Despite the consensus reached between the Senate and the White House, the legislative process still faces challenges.The House of Representatives passed a bill last week that included full spending and adjourned, leaving Washington. It was scheduled to reconvene next Monday. This means any amendments to the bill would require a new vote in the House.

Given that Mike Johnson does not expect to arrange for lawmakers to return to work early, there may still be a brief funding disruption even if the Senate passes the agreement.However, analysts point out that this short-term shutdown over the weekend will actually have minimal substantive disruption to government operations, and the market reaction is expected to be relatively mild.

Polls show that the Trump administration's immigration enforcement efforts are losing support among voters. This trend poses a risk to the Republican Party in the upcoming midterm elections, prompting the Trump administration to consider adjusting its deportation policies.

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