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Federal Update: Partial Government Shutdown Continues
Congressional lawmakers remain at an impasse over immigration policy changes needed to pass a yearlong Department of Homeland Security funding bill.
Without an agreement to fund the Department of Homeland Security (DHS), funding has lapsed for the agency, prompting a partial government shutdown. The shutdown is narrower in scope than the government shutdown that occurred in late 2025 and affects DHS only.
Disagreements remain between senators and the Trump administration over proposed reforms to Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP). Without agreement on those reforms, the Senate does not have enough votes to pass a yearlong DHS funding bill.
Although the partial government shutdown is limited to DHS-related funding, several agencies under the DHS purview are beginning to feel the effects. The severity of the impacts will depend on how long the shutdown lasts and how long agencies can operate without funding. ICE and CBP are expected to continue most operations, supported in part by funding approved in last year’s One Big Beautiful Bill Act.
Impacts of interest to cities include:
Federal Emergency Management Agency (FEMA):
- A significant portion of staff is expected to be furloughed, disrupting disaster response coordination and delaying aid payments.
- FEMA reports its disaster relief fund now stands at $9.6 billion, down sharply from the $30 billion it told Congress was available earlier in February.
- The agency no longer has access to $22.5 billion in temporary funding after a short-term spending measure expired.
Transportation Security Administration (TSA):
- About 95% of employees are working without pay, increasing the risk of absenteeism, longer airport security lines, and potential flight delays.
Cybersecurity and Infrastructure Security Agency (CISA):
- Only critical threat-response operations would continue. Most long-term planning, training, and cyber prevention efforts will pause, and more than half of the workforce is expected to be furloughed.