Partial Government Shutdown 2026: Benefits Affected and What Happens Next

A partial government shutdown began early Saturday, January 31, 2026, after Congress failed to finalize funding for several federal agencies before the deadline.

This is not a full shutdown. Only agencies without approved funding for the new fiscal year are affected, while others continue operating.

The current lapse is tied mainly to a dispute over Department of Homeland Security (DHS) funding. Senate Democrats blocked final approval without changes to immigration enforcement policies, leaving some spending bills unresolved.

Why This Is a Partial Shutdown

Congress passed most federal funding bills for the year, but a handful, including DHS, remain unfinished. When even one major bill expires without replacement, affected agencies must shut down or scale back operations.

Mandatory programs and services funded outside the annual budget process are not impacted.

What Stays Open

The following services continue during the shutdown:

• Social Security, Medicare, and Medicaid payments continue as normal

• U.S. Postal Service operations are unaffected

• Military operations, air traffic control, and national security remain active

• Essential law enforcement and border security staff continue working (pay may be delayed)

These functions are protected because they are funded through permanent laws or considered essential for public safety.

What’s Closed or Limited

Agencies without funding must reduce operations:

• Portions of State, Treasury, Labor, Transportation, HUD, Education, and HHS

• Furloughs for non-essential federal workers

• Delays in passport processing, non-emergency consular services, and public outreach

• Possible IRS service delays, especially if the shutdown continues into tax season

Administrative work slows significantly, even where core services remain active.

Economic Impact

Past shutdowns show wider consequences beyond federal offices.

A six-week shutdown in late 2025 led to widespread furloughs and slowed economic growth, affecting contractors, small businesses, and local governments.

What Happens Next

Congress is expected to return Monday, February 2, to resume negotiations.

Once lawmakers pass the remaining funding bills and the President signs them, the shutdown will end and federal operations will gradually return to normal.

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