NEWS | Congress Passes, President Signs Funding Legislation Ending Partial Shutdown

No matter how brief, shutdowns always harm small business - NSBA applauds Congress and the Administration for working quickly to choose compromise, ending the partial closure this week.

ANALYSIS | While Congress ultimately moved to reopen the government, the episode underscores continued instability in the appropriations process and the growing reliance on short-term fixes to resolve major policy disputes. The decision to pair full-year funding for most agencies with a temporary extension for DHS reflects unresolved tensions that could resurface later this year, creating renewed uncertainty for federal programs, contractors, and small businesses that depend on predictable funding, timely grant execution, and uninterrupted agency operations.

---

FEB. 03, 2026 | Lawmakers in the U.S. Senate and House of Representatives have reached a bipartisan agreement to end the most recent partial federal government shutdown and keep the government funded through the remainder of the fiscal year.

Last week, the Senate approved a $1.2 trillion appropriations package, covering funding for the vast majority of federal agencies through September 30.

The House of Representatives followed suit this afternoon, with a narrow 217–214 vote to pass the Senate-approved funding plan, bringing an end to the shutdown that began last weekend when temporary funding had lapsed.

Around 4:30 p.m. EST this afternoon, President Trump signed the funding bill into law, officially reopening the affected parts of the federal government and reinstating regular operations.

The lapse in funding had halted many non-essential federal operations after Congress failed to agree on full appropriations by the end of the short-term deadline. The new package not only restores funding, but also guarantees back pay for federal employees who were furloughed or required to work without pay during the shutdown.

One of the primary sticking points in the budget negotiations was funding for the Department of Homeland Security (DHS). As a solution, rather than passing a full fiscal-year funding for the agency, lawmakers adopted a short-term extension for DHS through February 13, giving negotiators just a short window to continue talks on immigration enforcement reforms before another partial shutdown materializes.

While the immediate shutdown is over, the continuing resolution for DHS and ongoing disagreements over policy provisions, such as immigration-related reforms, mean additional negotiations and legislative action are likely in the coming weeks as Congress works to finalize all appropriations for FY 2026.

Follow NSBA as we continue uring Congress to prioritize the nation's most important economic community in their considerations of future spending deals because shutdowns always harm small business.