#PartialGovernmentShutdownEnds

Partial Government Shutdown Ends

The partial U.S. government shutdown that kicked off on January 31, 2026, wrapped up quickly—just four days later—when President Donald Trump signed a massive $1.2 trillion spending package into law on February 3, 2026. The House passed it narrowly 217-214 that same day (after the Senate had already approved a version on January 30), sending it straight to the President's desk for a swift signature. This ends the second shutdown in recent months, but it's far from a clean resolution—it's more like kicking the can down the road on the thorniest issue.

Here's the breakdown: The deal funds the vast majority of federal agencies through the end of fiscal year 2026 (September 30), including full-year appropriations for Defense, Labor-HHS-Education, Transportation-HUD, State-Foreign Operations, and Financial Services-General Government. That covers a huge chunk of the government—think military, health programs, education, housing, transportation, diplomacy, and more. Furloughed employees get back pay, and agencies are reopening immediately, with most workers back at their desks by February 4 or 5.

The catch? The Department of Homeland Security (DHS) only gets a two-week continuing resolution through February 13, 2026. This was a hard-fought concession from Democrats, who pushed for restrictions on immigration enforcement (especially ICE operations) after high-profile incidents like the fatal shootings of two citizens in Minneapolis involving federal officers. Republicans wanted full funding without strings; Democrats held the line, forcing this short-term extension to buy time for negotiations on policy changes. If no agreement is reached by mid-February, we could see another partial shutdown focused on DHS—potentially disrupting border security, immigration processing, cybersecurity (CISA), and other critical functions.

From my spot in Istanbul following these U.S. macro dramas, this short-lived shutdown (unlike the brutal 35+ day ones of the past) had limited immediate economic fallout—markets barely blinked, as it was partial and brief. But the uncertainty lingers: government operations stabilize for now, but the DHS cliff creates fresh volatility heading into mid-February. For crypto and risk assets, shutdown drama often means temporary risk-off moves (Bitcoin dips on uncertainty), followed by relief rallies once resolved. Here, the quick end removes one headwind, but the ongoing immigration/border fight could spill into broader fiscal debates.

Overall, it's a win for stability in the short term—federal workers paid, services resuming, no prolonged chaos. But it's classic Washington: solve one crisis by creating the next. Eyes on February 13—if talks break down, expect headlines, market jitters, and more pressure on risk sentiment. In the meantime, this resolution clears some noise, potentially supporting equities and crypto as macro fears ease a bit. Stay tuned; fiscal fights never really end—they just pause.