Despite receiving public backing from President Trump, a bipartisan spending deal aimed at averting a partial U.S. government shutdown hit a snag late Thursday, causing the probability of a shutdown implied by prediction markets to surge to 70%.

Senate leadership had initially planned to pass the funding package on Thursday evening, but objections from at least one senator blocked the fast-track voting process. Senate Majority Leader John Thune and Minority Leader Chuck Schumer were forced to delay consideration until Friday, leaving lawmakers with only a few hours to act before funding expires at midnight Friday, creating significant market uncertainty. Thune acknowledged that negotiations had "hit a snag on both sides" and expressed hope that with the Senate scheduled to reconvene Friday, consensus could be reached to complete the legislation. Schumer blamed Republicans for the delay, urging them to "get their act together." As the legislative deadlock persists, investor concerns over Washington's political risks have intensified, with close attention on the high-stakes, race-against-time negotiations. The procedural delay primarily stemmed from disputes over specific legal provisions and the funding duration for the Department of Homeland Security (DHS), complicating the unanimous consent agreement needed to avoid a funding lapse and making the path to a final agreement highly uncertain. Graham Blocks Quick Vote According to The Epoch Times, Senator Lindsey Graham blocked the package, preventing the "unanimous consent" procedure required for swift passage. Graham's core objection centered on wording in the bill related to repealing the so-called "Arctic Frost" provision. This provision previously allowed senators to file lawsuits if their phone records were collected during the investigation by former Special Counsel Jack Smith. Smith's investigation, codenamed "Arctic Frost," was premised on allegations that arranging alternate electors in states where the 2020 election results were challenged by the Trump campaign constituted a criminal act. As part of the probe, the Justice Department and FBI sought sensitive private information from individuals including Trump, his advisors, lawyers, and congressional Republicans. Citing a report from The Hill, Graham argued that senators deserve the right to seek court redress if they face abuse of power or illegal seizure of records, emphasizing that "every senator should want to make sure this doesn't happen again." Furthermore, Graham expressed dissatisfaction with the bill's lack of full-year funding for the Department of Homeland Security (DHS), stating that law enforcement personnel are currently being "demonized" and urgently need funding support. Spending Bill Restructured Just hours before the obstruction, the White House and Senate Democrats had announced a deal. Under this agreement, Senate Democrats would provide the votes to pass five spending bills already approved by the House, providing full funding for the Departments of Defense, Labor, Health and Human Services, Education, Transportation, and Housing and Urban Development. However, as part of the compromise, full-year funding for the Department of Homeland Security (DHS) was stripped from the package and replaced with a two-week temporary funding measure. This arrangement was designed to allow more time for further negotiations on immigration enforcement policies. DHS Funding and Enforcement Reform Divisions The DHS funding arrangement became a focal point of contention. Democrats vowed to oppose full-year funding for DHS, directly citing the fatal shooting of Alex Pretti by federal agents in Minneapolis. Schumer explicitly laid out conditions for supporting a DHS funding package, including ending ICE agents' "roving patrols" in cities, requiring search warrants, enhancing coordination with local law enforcement, and implementing accountability measures such as mandatory body cameras and the display of proper identification. Republicans showed mixed reactions internally. While some Republicans, like Senator Josh Hawley, supported Trump's call for a "thorough investigation" into the Pretti shooting, he emphasized that the top priority was to avoid a "disastrous" government shutdown and stated his intention to vote for the DHS funding bill. Whether the various parties can bridge their differences before the Friday midnight deadline has become the central focus of market attention.