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Trump and Democrats reach two-week tentative deal, temporarily easing government shutdown crisis

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Trump and Democrats reach two-week tentative deal, temporarily easing government shutdown crisis

# Source: Wall Street News

# By Ye Zhen

Trump stated that a temporary agreement has been reached with Senate Democrats to avert a government shutdown, providing two weeks of funding for the Department of Homeland Security to continue negotiations. However, with the House of Representatives adjourned until next week, a brief technical shutdown remains unavoidable.


US President Donald Trump has struck a temporary deal with Senate Democrats to prevent a government shutdown, a move that buys more time for both sides to negotiate.


According to reports, Trump announced the agreement and urged both parties to vote in support of it. A Democratic aide revealed that the deal will provide two weeks of funding for the Department of Homeland Security to facilitate further negotiations. Senate Democratic and Republican leaders were consulting their respective members on the White House-brokered agreement on Thursday evening.


The key backdrop to the negotiations is the incident in Minneapolis earlier this month, where federal agents fatally shot two US citizens, sparking widespread questions about immigration enforcement operations. Democrats have put forward a series of restrictions, including requiring law enforcement officers to refrain from wearing face coverings, mandating the use of body cameras, and obtaining search warrants before entering residential premises.


The reach of this temporary agreement has created a buffer to prevent a government shutdown after Friday, yet a short technical shutdown may still occur if the House of Representatives fails to take timely action.


## Two Weeks of Negotiation Time Secured, But a Brief Shutdown May Be Inevitable

The core of this temporary funding agreement is to secure additional time for both parties to discuss potential restrictions on immigration enforcement actions.


Earlier this month, an operation by federal agents in Minneapolis left two US citizens dead, triggering nationwide protests. Senate Democratic Leader Chuck Schumer has insisted that Republicans agree to separate long-term Homeland Security funding from a massive spending bill to ensure the government remains operational after Friday.


Senate Republican Leader John Thune told reporters earlier that any breakthrough would hinge on negotiations between Democrats and the White House.


While the Senate and the White House have reached a consensus, the legislative process still faces challenges. The House of Representatives passed a comprehensive spending bill last week and adjourned from Washington, originally scheduled to reconvene only next Monday. This means any revisions to the bill will require a re-vote in the House.


Given that Mike Johnson is not expected to recall lawmakers early, a brief funding lapse may still occur even if the Senate passes the agreement. Analysts, however, note that such a short shutdown over the weekend would in fact have minimal substantive disruption to government operations, and the market reaction is expected to be relatively muted.


Polls show that support for the Trump administration's immigration enforcement actions is declining among voters. This trend poses a risk to the Republican Party in the upcoming midterm elections, prompting the Trump administration to consider adjusting its deportation policies.


## Risk Warning and Disclaimer

The market is risky, and investment requires prudence. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situations or needs of individual users. Users should assess whether any opinions, views or conclusions in this article are consistent with their own specific circumstances. Any investment made based on this article is at the investor's sole risk.

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