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The funding lapse followed stalled negotiations linked to disputes over new money for the Department of Homeland Security (DHS) after fatal shootings involving federal immigration agents in Minneapolis. The disagreement halted broader budget talks and delayed approval of several spending bills.
Around three-quarters of federal operations are affected, prompting agencies to begin shutdown procedures across sectors including education, health, housing and defence. If the impasse continues, tens of thousands of federal workers could face unpaid leave or delayed salaries.
The Senate approved a package covering most agencies through September, along with a two-week temporary measure to keep DHS operating while immigration policy negotiations continue. The House, currently out of session, is scheduled to return next week to vote on the proposal. The president backed the agreement and called for swift action to avoid a prolonged disruption.
Lawmakers remain divided over immigration enforcement and DHS funding, with calls for tighter oversight and reforms facing opposition from some conservatives. Officials said preparations were under way for an orderly shutdown, expressing hope that the lapse would be short.