U.S. Government Shutdown Fears Ease as Senate Democrats Reach Deal With Trump

The fears of another U.S. government shutdown have dropped amid the new developments in the Senate. This comes as President Trump reached a new deal with the Democrat lawmakers to stop the government from closing once more.

U.S. Government Shutdown Fears End Amid Trump Intervention

According to reports, a deal has been reached between the policymakers and the US President to prevent another government shutdown. The Lawmakers have agreed on a bipartisan deal on the funding to prevent a government shutdown, according to an announcement made by the office of Democratic Leader Chuck Schumer.

In the new deal, the DHS funding has been kept apart from the overall spending bill. This comes following a report by CoinGape that President Trump and Schumer were almost through making a deal following talks on the matter.

Trump on Thursday also backed the new spending deal brokered by U.S. Senate Republicans and Democrats that will prevent a U.S. government shutdown as lawmakers continue to negotiate measures to rein in immigration agents.

However, the president didn’t say that the matter has been fully resolved. When asked about the issue, Trump said, “I don’t know, it could still happen.”

🚨 "…The only thing that can slow our Country down is another long and damaging Government Shutdown. I am working hard with Congress to ensure that we are able to fully fund the Government, without delay…" – PRESIDENT DONALD J. TRUMP pic.twitter.com/6mD9Ex3Eqs

— The White House (@WhiteHouse) January 29, 2026

It was not clear whether the House of Representatives would accept the agreement or when it would consider the legislation. House Speaker Mike Johnson had suggested earlier on Thursday that it may be difficult to get members, who are on a scheduled break, to return to Washington before the chamber is normally set to reconvene on Monday.

This means that parts of the U.S. federal government could temporarily shut down over the weekend.

Crypto Traders Increase Bet on a Shutdown

Traders are increasing their bets on the potential U.S. government shutdown despite the development. The odds of the closure have gone back up to 68% after it had initially crashed to as low as 40% according to Polymarket.

This comes at a time when there are negotiations regarding the funding of the ICE. Although a deal has been reached regarding other factors, the Democrat lawmakers have not changed their position regarding this factor.

The senators had demanded new restrictions on federal immigration agents. This includes an end to their roving patrols as well as a need to wear cameras on their bodies.

Meanwhile, the CLARITY Act has progressed before another potential U.S. government shutdown. Yesterday, the Senate Agriculture Committee passed its portion of the crypto market bill.

However, it should be noted that the Senate Banking Committee has not yet completed its part. The bill will only be ready after both committees are done with their parts and meet for a unanimous vote.