Washington’s Planning for a Mini Shutdown: Starting Line

Jan. 30, 2026, 12:11 PM UTC

Only a Little Shutdown

Senate Democrats are on board. The president’s on board. All signs point to a way forward that has a chance to limit the next government shutdown to no more than a few days.

Instead of an appropriations six-pack that fully funds a lot of the government, including the Department of Homeland Security, senators are looking at a combo that would fund DHS for two weeks while five other appropriations measures fund the military, the IRS, and other arms of the government for the rest of the fiscal year.

The goal is to give leaders and the White House time to negotiate over limits on what ICE and CPB can do — changes that became urgent to many on Capitol Hill after the shooting deaths of American citizens in Minnesota. Among Democrats’ demands: body cameras, no masks, an enforceable code of conduct, and requiring judicial warrants in more circumstances.

The House is back on Monday. If that chamber’s OK with the five-plus-one strategy, representatives will have the opportunity to clear the measure quickly, meaning a minimal shutdown lasting for basically a long weekend.

Zach C. Cohen and Ken Tran explain more for subscribers in today’s BGOV Budget.

Posters depicting images of shooting victims Renee Good and Alex Pretti along Lake Street in Minneapolis.  g
Posters depicting images of shooting victims Renee Good and Alex Pretti along Lake Street in Minneapolis on Jan. 29.
Photographer: Ben Brewer/Bloomberg

See Also:

Warsh Picked for Fed

President Donald Trump’s pick to chair the Federal Reserve is Kevin Warsh, who became the youngest person to serve as a Fed governor when President George W. Bush named him in 2006.

  • “I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” Trump said in a post on social media.

Warsh has advised Trump on economic policy as far back as his first presidential campaign, but Trump passed him over for the top job in 2017 when he selected Jerome Powell. In recent months as the president complained that the Fed wasn’t lowering interest rates enough, Warsh has argued the same position, going against his longstanding reputation as an inflation hawk. Read More

The nomination must be confirmed by the Senate, where there’s concern about the Fed’s independence and resistance to confirming anyone while there’s an unusual Justice Department investigation into the central bank’s headquarters renovation.

Also Read: Thune Says Probably Can’t Confirm New Fed Chair Without Tillis

Clinton Contempt Vote

House leaders are preparing to bring up for a floor vote resolutions to hold former President Bill Clinton and former Secretary of State Hillary Clinton in contempt of Congress for defying Oversight Committee subpoenas.

The panel wants to question the Clintons about disgraced financier and sex offender Jeffrey Epstein.

Rather than appear for a deposition, the Clintons co-signed a letter to the committee’s chairman, writing, “If the government didn’t do all it could to investigate and prosecute these crimes, for whatever reason, that should be the focus of your work — to learn why and to prevent that from happening ever again. There is no evidence that you are doing so.”

The process of holding an individual in contempt of Congress usually requires a vote by the full House to direct the matter to the Justice Department. Two former Trump aides, Peter Navarro and Steve Bannon, served jail time after being held in contempt.

Netflix Merger Fight

Top Hollywood executives are due on Capitol Hill on Tuesday to testify about Netflix’s proposed $82.7 billion purchase of the streaming and studio operations of Warner Bros. Discovery.

It’s one of the biggest media deals in years and stands to reshape the entertainment industry. Besides its famed movie and TV studios, Warner Bros. operates a stable of cable networks including CNN and TNT.

A Senate Judiciary subcommittee is looking at potential antitrust issues if all that movie-making and streaming power goes under the same ownership.

See Also: Netflix Boosts Federal Lobbying as It Competes for Warner Bros.

Kelly v. Hegseth

Sen. Mark Kelly goes to court on Tuesday, when a judge will consider his arguments for shutting down Defense Secretary Pete Hegseth’s effort to downgrade the former Navy captain’s retirement rank and lower his pay.

Kelly (D-Ariz.) is asking for a preliminary injunction, saying in a US District Court filing that Hegseth doesn’t have the legal grounds for “subjecting a sitting Senator to military discipline to punish him for his public statements.” Retired four-star generals, admirals, and service secretaries filed an amicus brief backing up Kelly.

Hegseth’s actions were in response to a video in which Kelly and other military veterans now serving in Congress reminded those now in uniform that they are allowed to not carry out illegal orders. The video didn’t mention any specific orders, but the timing was after the US started sinking boats in the Caribbean to stop suspected drug-runners.

On social media, Trump called for the video-makers traitors who should be arrested and put on trial for “SEDITIOUS BEHAVIOR, punishable by DEATH.”

Special Elections

Two special elections are coming up, beginning with one tomorrow to fill a Texas seat in Congress that’s been vacant for almost a year.

Democrats Amanda Edwards, a former Houston city councilwoman, and Christian Menefee, a former elected Harris County Attorney, are competing in a runoff. The winner will complete the term of the late Sylvester Turner (D), who died last March after just two months in office.

Once the victor is sworn in, the House will have 218 Republicans and 214 Democrats, shaving the margin of control down and making it easier for a small number of Republicans to exert influence.

Then on Thursday, there’s a primary in a New Jersey district where the Democratic nominee will be favored to complete the House term of Gov. Mikie Sherrill (D).

Democrats have 11 hopefuls to choose from, Greg Giroux reports. Notable candidates include ex-Rep. Tom Malinowski, who represented an adjacent district from 2019 to 2023; Essex County Commissioner Brendan Gill, who has close ties to many party officials and unions; and Analilia Mejia, a progressive activist backed by Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.)..

Malinowski is the target of more than $1.7 million in opposition spending by the United Democracy Project super PAC aligned with the American Israel Public Affairs Committee. Its TV ads attacked Malinowski on issues unrelated to Israel, including an accusation he sided with Trump to increase funding for ICE. (Malinowski denounced the ad as “a despicable and unforgivable lie,” noting that the cited vote was on a 2019 border funding measure backed by majorities of both parties.)

Before You Go

Trump Sues IRS, Treasury for $10 Billion for Tax-Return Leak

President Donald Trump sued the US Treasury and Internal Revenue Service for at least $10 billion over an unauthorized disclosure of his tax returns to the press during his first term in office, potentially putting American taxpayers on the hook for a massive payout.

Trump’s Options for Iran Strike Grow Even With Goals Unclear

The arrival of a US aircraft-carrier strike group in the Middle East has given President Donald Trump new, more forceful options to carry out his threats to attack Iran, but the choices carry serious risks of retaliation from Tehran.

Widespread Layoffs Reemerge as Threat for Federal Worker Unions

The end of a moratorium blocking the Trump administration from mass firing federal workers exposes legal obstacles for public-sector labor unions trying to stop further layoffs.

Grassley Probes Labor Secretary Over Misconduct Allegations

Sen. Chuck Grassley (R-Iowa) is pressing Labor Secretary Lori Chavez-DeRemer to respond to allegations that she committed travel fraud and had an inappropriate relationship with a staffer, marking the first signs she could be losing support from key Republicans.

US Has Investigated Claims WhatsApp Chats Aren’t Private

US law enforcement has been investigating allegations by former Meta Platforms Inc. contractors that Meta personnel can access WhatsApp messages, despite the company’s statements that the chat service is private and encrypted, according to interviews and an agent’s report seen by Bloomberg News.

Trump Administration Backs Spy Chief’s Role in Ballot Raid

The Trump administration defended Director of National Intelligence Tulsi Gabbard’s participation in an FBI raid of a Georgia county election office to investigate the 2020 election, while senior Democrats raised concerns about her involvement.

Nvidia Worked to ‘Co-Design’ DeepSeek Model, US Lawmaker Says

Nvidia Corp. provided technical support that helped DeepSeek improve its breakthrough artificial intelligence model despite US export controls designed to restrict the Chinese startup’s access to high-end American chips, according to the Republican head of the House China committee.

DHS Vendors in California Billed $4.5 Billion in Work in FY 2025

More than 800 contractors that won billions of dollars in business with the Homeland Security Department in California last year are under pressure from state legislators seeking to impose financial penalties for doing business with the agency.

Trump Threatens Canada With More Tariffs on Private Jet Snag

President Donald Trump threatened to impose a 50% tariff on aircraft from Canada sold in the US and decertify all new planes made there, jeopardizing Bombardier Inc.’s access to its biggest market for private jets.

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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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