At a Glance
- The federal government may shut down federal shutdown on September 30.
- The $1.2 trillion funding package is at risk of a vote in the House.
- ICE operations would likely remain funded, drawing on a $75 billion windfall from last year.
- Why it matters: Citizens and agencies could face furloughs, but border enforcement may continue unchanged.
The possibility of a federal shutdown looms as Congress struggles to approve a $1.2 trillion appropriations package. While many agencies risk furloughs, Immigration and Customs Enforcement (ICE) may continue operations unhindered, thanks to a sizable last-year funding boost.
Federal Funding Landscape
The House has moved a single bill that bundles the remaining six full-year appropriations into a $1.2 trillion package. Senators have opposed the bill, demanding that it separate the Department of Homeland Security (DHS) from other agencies.
A partial shutdown would begin on September 30 and could last until the new fiscal year starts on October 1. The remaining appropriations cover:
- Defense: $831 billion
- DHS and its components (FEMA, TSA, Coast Guard)
- State, Treasury, Transportation, Health and Human Services, Housing and Urban Development
Senate Minority Leader Chuck Schumer said Democrats would pass the other five bills if they were split from DHS. Republicans, however, view a split as a betrayal of the bipartisan agreement already signed by the administration.
Agencies Most Affected
- FEMA – no pay, but required to work
- TSA – no pay, required to work
- Coast Guard – no pay, required to work
- State Department – furloughs likely
- Treasury – furloughs likely
A government shutdown would also mean that many federal employees would work without pay, a situation that has historically led to morale and operational challenges.
ICE Operations Amid Shutdown
Despite the looming shutdown, ICE employees are considered “excepted” workers. They would be required to continue working, but would not receive pay until the appropriations are finalized.
The agency also received a $75 billion infusion last year under the “One Big Beautiful Bill” Act. That windfall would allow ICE to sustain regular operations for multiple years even if the current funding lapses.
“ICE received $75 billion in the One Big Beautiful Bill Act. In the event of a lapse in funding, ICE would be able to sustain regular operations for multiple years, while the other agencies under this bill would likely be forced to furlough workers and reduce operations,” said DeLauro’s office.
A continuing resolution would keep ICE enforcement and removal operations at their current level, instead of reducing it by $115 million, and would exclude new guardrails contained in the full-year funding measure, the office added.
Funding Flexibility
If DHS is funded through a continuing resolution (CR), the agency would have more flexibility to move money within its budget to support ICE. This contrasts with the $1.2 trillion package, which imposes new guardrails and potentially reduces funding for ICE.
The current bipartisan legislation also includes:
- A reduction of 5,500 ICE detention beds
- $20 million for body cameras for ICE agents
DHS is reviewing footage from multiple body-worn cameras in the Pretti incident, according to sources.
Legislative Dynamics and Historical Context
Congress has already passed and the President has signed into law six of the twelve full-year appropriations bills, covering Justice, Commerce, Agriculture, Interior, Veterans Affairs, and the Legislative Branch. These agencies would remain funded through September 30.
The other six bills account for $1.2 trillion, nearly 80% of the total appropriations for the 2026 fiscal year. The House’s bundling of these bills has made a split difficult.
A previous shutdown in 2023 lasted 43 days and was the longest in U.S. history. Eight Democrats ultimately voted with Republicans to reopen the government without a deal on health-care subsidies, a move that drew criticism from both sides.
Key Takeaways
- A federal shutdown is likely to begin on September 30 if Congress does not approve the $1.2 trillion package.
- ICE operations would likely continue, drawing on a $75 billion boost from last year.
- The Department of Homeland Security and its components would be required to work without pay during a shutdown.
- The legislative debate centers on whether to separate DHS funding from the rest of the appropriations package.
- A continuing resolution would preserve ICE funding at current levels and avoid the $115 million cut proposed in the full-year bill.
The outcome will shape federal operations for the next fiscal year and determine whether border enforcement remains uninterrupted amid a broader government pause.
