Down to the Wire with Shutdown Brinksmanship: Starting Line

Jan. 29, 2026, 12:05 PM UTC

Shutdown Watch

This is an important day in yet another shutdown countdown.

Senate Democrats control the make-it-happen votes that will determine whether government operations chug along for the rest of the fiscal year, and they say they want changes in immigration enforcement before they’ll say yes. The minority party wants to pass legislation funding everything except the Department of Homeland Security while Congress changes the law to, among other changes, set up a code of conduct, mandate the use of body cameras, and ban masks.

And they’re not — at least at this stage — making it easy for the Trump administration to peel away votes or make side deals. Mica Soellner reports that the White House sought “a listening session” with several Senate Democrats and got turned down.

Still, there were some discussions and the administration has moved toward the Democrats’ demands, Steven T. Dennis reports, citing a person familiar with negotiations. No deal was reached.

Less than 48 hours remain until about 80% of the money to run the government runs out, including funds for the military and the folks at the IRS gearing up for tax-filing season.

Subscribers, there’s more on the shutdown state of play in this morning’s editions of Congress Tracker and BGOV Budget.

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Next in Minnesota

After two fatal shootings, the viral photo of a 5-year-old detainee in a bunny hat, a change of command and a court order, America will hear this morning from the new face in charge of the immigration roundups in Minnesota.

Border czar Tom Homan’s scheduled to speak in Minneapolis this morning.

Late yesterday, a federal judge blocked the Department of Homeland Security and Immigration and Customs Enforcement from arresting or detaining refugees in the state.

Judge John R. Tunheim also said that any refugees in custody must be immediately released, Shweta Watwe reports.

  • “Refugees have a legal right to be in the United States, a right to work, a right to live peacefully—and importantly, a right not to be subjected to the terror of being arrested and detained without warrants or cause in their homes or on their way to religious services or to buy groceries,” the judge said.

Tunheim also said the threat of irreparable harm favors immediate relief because the named plaintiffs recounted stories of terror and trauma from their arrests. Read More

Political Cost

The behavior of federal agents surging into cities is starting to put some Democrats in an uncomfortable position,

Greg Giroux reports that a nonbinding resolution adopted last year (H. Res. 488) has become red meat in Senate primaries. The measure mostly condemned an antisemitic terror attack in Boulder, Colo., but ended by expressing “gratitude to law enforcement officers” including ICE.

There’s no taking that back, and the wording is having a delayed political impact. For instance, in the Illinois Senate race, Lt. Gov. Juliana Stratton (D) brought up Democratic Rep. Raja Krishnamoorthi’s vote for the resolution at their first Senate debate. Yesterday, his campaign began airing a television ad underscoring his opposition to Trump’s ICE.

The 75 Democrats who voted for that resolution also included Senate hopefuls Angie Craig (Minn.), Seth Moulton (Mass.), Chris Pappas (N.H.), and Haley Stevens (Mich.). Read More

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Iran Pressure

Trump warned Iran to make a nuclear deal with the US or face military strikes far worse than the attack he ordered last June, increasing pressure on the regime and propelling oil prices higher.

In a social-media post on Wednesday, Trump said the fleet of US ships he’d ordered to the region, led by the USS Abraham Lincoln aircraft carrier, is “ready, willing, and able to rapidly fulfill its mission, with speed and violence, if necessary.”

Adopting the US president’s use of capital letters in social media, Iran’s mission to the UN wrote in a post on X that it was ready for dialogue based on mutual respect and interests but warned that “IF PUSHED, IT WILL DEFEND ITSELF AND RESPOND LIKE NEVER BEFORE.” Read More

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Eye on Trade

Cumulative US exports have been on the upswing and imports have been declining, with the most recent data showing the smallest trade gap since 2009.

Today, fresh numbers due from the government will show whether that trend continued in November. There have been large monthly swings in trade this year, in part as companies front-loaded shipments to get ahead of tariffs.

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Before You Go

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Senate Democrat Urges SEC to Probe Tribal Tax Credit Sponsor

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K Street Lobbying Conglomerate to Begin Trading on Nasdaq in IPO

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Great Society to DEI Fury: Agency Trump Cut Was Antibias Bastion

The Office of Federal Contract Compliance Programs was arguably the federal government’s most potent force in integrating federal contractors’ workforces over the past 60 years. It took two days for President Donald Trump to largely dismantle it.

FTC Chair Pushes for Corporate Use of Tech to Boost Kids’ Safety

Federal Trade Commission Chairman Andrew Ferguson urged businesses to use technology to comply with children’s privacy law rather than find “innovative ways of breaking the law” at a Wednesday workshop on age verification technologies.

Crypto Super PAC Reaches Nearly $200 Million on Cusp of Midterms

Pro-crypto super PAC Fairshake said it holds more than $193 million in the bank ahead of this year’s midterm elections as it seeks to bolster industry allies running for Congress — and defeat legislative foes.

Commerce Department Plans National AI Center in San Francisco

The US Department of Commerce is preparing to open a national artificial-intelligence center in San Francisco, putting it closer to firms at the center of some of the government’s most high-profile initiatives.

Trump Nominates US Prosecutor as Top National Fraud Investigator

President Donald Trump on Wednesday announced the nomination of a veteran federal prosecutor to lead a new Justice Department unit focused on fraud, as the administration looks to refocus attention on the justification for its immigration crackdown in Minnesota that has grown increasingly unpopular.

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To contact the reporter on this story: Katherine Rizzo in Washington at krizzo@bgov.com

To contact the editors responsible for this story: Keith Perine at kperine@bloombergindustry.com; Herb Jackson at hjackson@bloombergindustry.com

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