Government Steams Towards Partial Shutdown Amid Democrat Demands Over ICE

As a Friday deadline approaches for a partial government shutdown, Republicans are backed into a corner following national uproar over two deadly ICE shootings by federal agents in Minneapolis amid growing concern over the agency's tactics. 

Senate Majority Leader John Thune (R-SD) plans to move forward with a six-bill spending package, which includes funding for the Department of Homeland Security (DHS) which runs ICE. Democrats are insisting that R's drop the DHS language from the package, however Republicans are refusing to do so. 

The House-passed bill would allocate another $10 billion for ICE on top of the $76 billion the agency is already slated to receive over four years from the One Big Beautiful Bill Act, which was signed into law last year. 

Right now Trump is focusing on "de-escalatory measures," as one administration official tells Punchbowl News. To that end, the admin has already demoted Gregory Bovino, the CBP official in charge of Minneapolis operations - who's been replaced by border czar Tom Homan. Trump also spoke by phone with Minnesota Gov. Tim Walz and Minneapolis Mayor Jacob Frey on Monday. Meanwhile, DHS Secretary Kristi Noem has agreed to testify before the Senate Judiciary Committee after months of refusing to do so. According to Punchbowl, Noem "has a real problem on both sides of the aisle on the Hill," and her top aide, Corey Lewandowski, met with Trump for two hours on Monday night. 

Polymarket odds of a shutdown by Jan. 31 (Saturday) are now hovering around 79%. 

Democrats Are Still A No

Senate Democrats - who are vowing to block the funding if it includes the DHS language, say the proposals being floated the the White House and Senate Republicans are unrealistic, and they're a 'no' until they see significant reforms to the conduct of federal immigration officers in Minneapolis and other cities - including prohibiting them from wearing masks during federal operations and requiring judicial search warrants before entering a suspect's home. 

On Monday, Senate Democratic Leader Chuck Schumer (D-NY) announced that Democrats will gladly speed through procedural obstacles to pass the funding package as long as it doesn't include DHS funding.

"If [Senate Majority Leader John Thune (R-S.D.)] puts those five bills on the floor this week, we can pass them right away. If not, Republicans will again be responsible for another government shutdown," said Schumer. 

Of note, stripping the DHS / ICE funding from the FY2026 package would require a new vote in the House, which is on recess this week - so there would be a short-term shutdown at minimum. 

GOP congressional leaders and the White House are desperate to avoid a scenario in which the funding package has to go back to the House, which explains their opposition to splitting off the DHS bill.

Here’s the concern gripping the top levels of the Trump administration — the House simply can’t pass another DHS funding bill under any circumstances.

Even if Trump were to cut a deal with Democrats that can get through the Senate, House Republicans believe they can’t round up 218 votes to pass a rule to get it on the House floor. Or alternatively, find 290 lawmakers willing to pass it under suspension of the rules. Republicans just don’t believe there’s a coalition in the House that can pass another DHS bill.

That’s why Trump has been focused on “de-escalatory measures,” as one administration official told us, a first step toward placating Democrats. -Punchbowl News

The Senate is expected to hold an initial vote to advance the package on Thursday, the day before Friday's deadline. 

Republican Lawmakers Scramble

Following the incidents in Minnesota, Republican lawmakers in both chambers began calling for a thorough investigation into Saturday's shooting, and have asked the Trump administration to immediately ease tensions in Minneapolis. 

"If I were President Trump, I would almost think about, ‘OK, if the mayor and the governor are going to put our ICE officials in harm’s way and there’s a chance of losing more innocent lives, then maybe go to another city," said Rep. James Comer (R-KY), chairman of the House Oversight and Government Reform Committee in a Sunday comment to Fox News' Maria Bartiromo. 

Sen. Ted Cruz (R-TX) called for "everyone" to "ratchet the anger down," while noting that the two US citizens "who have been killed in confrontations with law enforcement" were "from all appearances ... not violent criminals," The Hill notes. 

Sen. Rand Paul (R-KY) who chairs the Senate Homeland Security Committee, sent letters to the heads of CBP, ICE, and US Citizenship and Immigration Services on Monday calling on them to testify on Feb. 12 before his committee. 

How Far Will Dems Push?

While Democrats currently appear to have the upper hand in this fight, Punchbowl asks how far should they push it? While specific targeted policy changes and reforms are likely to gain traction with the White House - which is desperate to get past the moment, calls to "abolish ICE" will be ignored.

There’s also the obvious risk for Democrats: The political fallout from triggering a partial government shutdown just a couple of months after instigating a record 43-day funding lapse. And for DHS, this would hit FEMA at a time when much of the country is dealing with the aftermath of a severe winter storm. The Coast Guard and TSA are under DHS too. Plus, ICE would be funded anyway because of the cash infusion it got from the GOP’s One Big Beautiful Bill last year. -Punchbowl

Then there's the Pentagon, Labor, Transportation, and HUD departments which would be directly affected by the shutdown. The risk for Democrats is that Trump makes concessions on ICE but Democrats continue to 'resist.'

Tyler Durden Tue, 01/27/2026 - 19:10

Patel Says FBI Has Discovered Groups Funding Minnesota Protests

On Monday, FBI Director Kash Patel on Tuesday confirmed that the bureau is investigating groups that are believed to be organizing protests against ICE officials in Minneapolis, as daily demonstrations throughout the city continue.

People march and gather near the post office during a protest, Sunday, Jan. 18, 2026, in Minneapolis. AP Photo/Yuki Iwamura

Patel also said the bureau has made progress investigating groups that are allegedly funding the demonstrations. 

"We’ve got also investigations ongoing into the funding of this. We’ve made substantial progress," he said. "We’ve actually found groups and individuals responsible for funding it ‘cause it’s not happening organically."

FBI Director Kash Patel Announces They've IDENTIFIED Funders Of The Left-Wing Terrorist Groups Attacking ICE In Minnesota, ‘This Isn’t Organic’

“We've got also investigations ongoing into the funding of this. We've made substantial progress. We've actually found groups and… pic.twitter.com/pDV7EIInE5

— Benny Johnson (@bennyjohnson) January 26, 2026

Patel also said four people were arrested earlier this month after a federal vehicle was broken into in Minneapolis, and another person was arrested on Sunday.

"In a vehicle, we discovered not just [FBI] firearms, which thankfully we recovered, but also personal information about law enforcement," Patel told Johnson. "That personal information was being used on the ground to issue threats of life to FBI agents, along with their wives and their children. There are going to be more arrests on that same matter, today and tomorrow. We’re not done."

As the Epoch Times notes further, the FBI last week announced it would be offering a reward of up to $100,000 for information leading to the arrest and capture of individuals who allegedly stole government property out of an FBI vehicle.

This comes after the Department of Homeland Security (DHS) said a protester, Alex Pretti, was shot and killed after he approached Border Patrol officers with a 9 mm semiautomatic handgun. Officials did not specify whether Pretti brandished the gun (he did not).

Videos from the scene circulating on social media appear to show Pretti holding an object in his hand as he struggles with agents. The man’s family said in a statement shared by Sen. Bernie Sanders (I-Vt.) that Pretti was “clearly not holding a gun” but instead had “his phone in his right hand, and his empty left hand is raised above his head.

Earlier this month, Renee Good was shot and killed by an ICE officer in Minneapolis on Jan. 7. Videos show she was driving her Honda Pilot toward the officer when he fired at her. Federal authorities said the officer was struck by the vehicle and hospitalized with internal bleeding.

The Trump administration has defended the ICE agent involved in the shooting, saying his life was at risk. Local and national Democratic officials say both shootings were unjustified and have now warned they could move to shut down the federal government before a Jan. 30 funding deadline if funding for DHS, the agency that oversees ICE, is included in the package.

“Democrats sought common sense reforms in the Department of Homeland Security spending bill, but because of Republicans’ refusal to stand up to President Trump, the DHS bill is woefully inadequate to rein in the abuses of ICE,” Senate Minority Leader Chuck Schumer (D-N.Y.) said in a statement on Saturday. “I will vote no.”

Former Presidents Barack Obama and Bill Clinton also decried the shooting of Pretti, with Obama claiming it’s a sign that “many of our core values” are “increasingly under assault.” In a statement Sunday, Clinton also offered critical comments about the Minneapolis operation and condemned the events leading to Pretti’s death.

President Donald Trump wrote on Truth Social on Jan. 26 that he had spoken with Minnesota Gov. Tim Walz, a Democrat, and told Walz that “I would have (Border Czar) Tom Homan call him, and that what we are looking for are any and all Criminals that they have in their possession.” Walz on Monday confirmed he spoke with Trump.

Tyler Durden Tue, 01/27/2026 - 18:50

Tether Launches USAT, A Federally Regulated, Dollar-Backed Stablecoin For The US Market

Authored by Micah Zimmerman via BitcoinMagazine.com,

Tether, the world’s largest digital asset company by stablecoin circulation, announced Tuesday the official launch of USA₮, a federally regulated, dollar-backed stablecoin designed specifically for use in the United States under the recently enacted GENIUS Act.

USA₮ is issued by Anchorage Digital Bank, N.A., a federally chartered U.S. bank and one of the first institutions approved to issue payment stablecoins under the new law, Tether said.

The launch marks Tether’s first stablecoin built to operate fully within the U.S. regulated financial system, following years of regulatory scrutiny around offshore-issued dollar tokens.

The debut follows the company’s announcement late last year detailing the token’s design and naming former White House Crypto Council Executive Director Bo Hines as CEO of Tether USA₮. With Tuesday’s rollout, USA₮ is now available to U.S. users seeking a dollar-backed token that complies with federal banking and stablecoin rules.

The GENIUS Act established the first nationwide framework governing stablecoins marketed to U.S. users, requiring full reserve backing, bank or qualified issuer status, and ongoing regulatory supervision. Under the law, offshore-issued stablecoins that do not meet these standards face restrictions across U.S.-regulated exchanges, banks, and payment platforms.

USA₮ is structured to meet those requirements. According to the company, Cantor Fitzgerald will serve as the stablecoin’s designated reserve custodian and preferred primary dealer, providing transparency and oversight of reserves from launch. 

Anchorage Digital Bank will handle issuance, compliance, and on-chain settlement infrastructure.

Tether’s dominant role in the crypto space

While Tether’s flagship USD₮ remains the most widely used stablecoin globally, its offshore structure limited its role in the U.S. market under the new law. 

USA₮ allows Tether to maintain USD₮’s international dominance while offering U.S. institutions a regulated alternative tailored to domestic payment and settlement systems.

“This launch represents a new chapter for digital dollars in the United States,” said Paolo Ardoino, CEO of Tether.

“USD₮ has proven at global scale that digital dollars can deliver trust and utility. USA₮ extends that mission with a federally regulated product made in America.”

Bo Hines said the new stablecoin is aimed squarely at institutional users. “USA₮ is designed to meet federal regulatory expectations while delivering stability, transparency, and responsible governance,” he said. “It ensures the United States remains competitive in the evolution of digital money.”

During its initial rollout, USA₮ will be available on platforms including Kraken, Crypto.com, OKX, Bybit, and MoonPay, with additional U.S.-regulated exchanges and banking partners expected to follow.

According to bitcointreasuries.net, Tether holds 96,370 bitcoin, worth roughly $8.6 billion

Tyler Durden Tue, 01/27/2026 - 18:25

Peter Schiff: Printing Money Is Not the Cure for Cononavirus



In his most recent podcast, Peter Schiff talked about coronavirus and the impact that it is having on the markets. Earlier this month, Peter said he thought the virus was just an excuse for stock market woes. At the time he believed the market was poised to fall anyway. But as it turns out, coronavirus has actually helped the US stock market because it has led central banks to pump even more liquidity into the world financial system. All this means more liquidity — central banks easing. In fact, that is exactly what has already happened, except the new easing is taking place, for now, outside the United States, particularly in China.” Although the new money is primarily being created in China, it is flowing into dollars — the dollar index is up — and into US stocks. Last week, US stock markets once again made all-time record highs. In fact, I think but for the coronavirus, the US stock market would still be selling off. But because of the central bank stimulus that has been the result of fears over the coronavirus, that actually benefitted not only the US dollar, but the US stock market.” In the midst of all this, Peter raises a really good question. The primary economic concern is that coronavirus will slow down output and ultimately stunt economic growth. Practically speaking, the world would produce less stuff. If the virus continues to spread, there would be fewer goods and services produced in a market that is hunkered down. Why would the Federal Reserve respond, or why would any central bank respond to that by printing money? How does printing more money solve that problem? It doesn’t. In fact, it actually exacerbates it. But you know, everybody looks at central bankers as if they’ve got the solution to every problem. They don’t. They don’t have the magic wand. They just have a printing press. And all that creates is inflation.” Sometimes the illusion inflation creates can look like a magic wand. Printing money can paper over problems. But none of this is going to fundamentally fix the economy. In fact, if central bankers were really going to do the right thing, the appropriate response would be to drain liquidity from the markets, not supply even more.” Peter explained how the Fed was originally intended to create an “elastic” money supply that would expand or contract along with economic output. Today, the money supply only goes in one direction — that’s up. The economy is strong, print money. The economy is weak, print even more money.” Of course, the asset that’s doing the best right now is gold. The yellow metal pushed above $1,600 yesterday. Gold is up 5.5% on the year in dollar terms and has set record highs in other currencies. Because gold is rising even in an environment where the dollar is strengthening against other fiat currencies, that shows you that there is an underlying weakness in the dollar that is right now not being reflected in the Forex markets, but is being reflected in the gold markets. Because after all, why are people buying gold more aggressively than they’re buying dollars or more aggressively than they’re buying US Treasuries? Because they know that things are not as good for the dollar or the US economy as everybody likes to believe. So, more people are seeking out refuge in a better safe-haven and that is gold.” Peter also talked about the debate between Trump and Obama over who gets credit for the booming economy – which of course, is not booming.

We are living in crazy times. I have a hard time believing that most of the general public is not awake, but in reality, they are. We've never seen anything like this; I mean not even under Obama during the worst part of the Great Recession." Now the Fed is desperately trying to keep interest rates from rising. The problem is that it's a much bigger debt bubble this time around , and the Fed is going to have to blow a lot more air into it to keep it inflated. The difference is this time it's not going to work." It looks like the Fed did another $104.15 billion of Not Q.E. in a single day. The Fed claims it's only temporary. But that is precisely what Bernanke claimed when the Fed started QE1. Milton Freedman once said, "Nothing is so permanent as a temporary government program." The same applies to Q.E., or whatever the Fed wants to pretend it's doing. Except this is not QE4, according to Powell. Right. Pumping so much money out, and they are accusing China of currency manipulation ? Wow! Seriously! Amazing! Dump the U.S. dollar while you still have a chance. Welcome to The Atlantis Report. And it is even worse than that, In addition to the $104.15 billion of "Not Q.E." this past Thursday; the FED added another $56.65 billion in liquidity to financial markets the next day on Friday. That's $160.8 billion in two days!!!! in just 48 hours. That is more than 2 TIMES the highest amount the FED has ever injected on a monthly basis under a Q.E. program (which was $80 billion per month) Since this isn't QE....it will be really scary on what they are going to call Q.E. Will it twice, three times, four times, five times what this injection per month ! It is going to be explosive since it takes about 60 to 90 days for prices to react to this, January should see significant inflation as prices soak up the excess liquidity. The question is, where will the inflation occur first . The spike in the repo rate might have a technical explanation: a misjudgment was made in the Fed's money market operations. Even so, two conclusions can be drawn: managing the money markets is becoming harder, and from now on, banks will be studying each other's creditworthiness to a greater degree than before. Those people, who struggle with the minutiae of money markets, and that includes most professionals, should focus on the causes and not the symptoms. Financial markets have recovered from each downturn since 1980 because interest rates have been cut to new lows. Post-2008, they were cut to near zero or below zero in all major economies. In response to a new financial crisis, they cannot go any lower. Central banks will look for new ways to replicate or broaden Q.E. (At some point, governments will simply see repression as an easier option). Then there is the problem of 'risk-free' assets becoming risky assets. Financial markets assume that the probability of major governments such as the U.S. or U.K. defaulting is zero. These governments are entering the next downturn with debt roughly twice the levels proportionate to GDP that was seen in 2008. The belief that the policy worked was completely predicated on the fact that it was temporary and that it was reversible, that the Fed was going to be able to normalize interest rates and shrink its balance sheet back down to pre-crisis levels. Well, when the balance sheet is five-trillion, six-trillion, seven-trillion when we're back at zero, when we're back in a recession, nobody is going to believe it is temporary. Nobody is going to believe that the Fed has this under control, that they can reverse this policy. And the dollar is going to crash. And when the dollar crashes, it's going to take the bond market with it, and we're going to have stagflation. We're going to have a deep recession with rising interest rates, and this whole thing is going to come imploding down. everything is temporary with the fed including remaining off the gold standard temporary in the Fed's eyes could mean at least 50 years This liquidity problem is a signal that trading desks are loaded up on inventory and can't get rid of it. Repo is done out of a need for cash. If you own all of your securities (i.e., a long-only, no leverage mutual fund) you have no need to "repo" your securities - you're earning interest every night so why would you want to 'repo' your securities where you are paying interest for that overnight loan (securities lending is another animal). So, it is those that 'lever-up' and need the cash for settlement purposes on securities they've bought with borrowed money that needs to utilize the repo desk. With this in mind, as we continue to see this need to obtain cash (again, needed to settle other securities purchases), it shows these firms don't have the capital to add more inventory to, what appears to be, a bloated inventory. Now comes the fun part: the Treasury is about to auction 3's, 10's, and 30-year bonds. If I am correct (again, I could be wrong), the Fed realizes securities firms don't have the shelf space to take down a good portion of these auctions. If there isn't enough retail/institutional demand, it will lead to not only a crappy sale but major concerns to the street that there is now no backstop, at all, to any sell-off. At which point, everyone will want to be the first one through the door and sell immediately, but to whom? If there isn't enough liquidity in the repo market to finance their positions, the firms would be unable to increase their inventory. We all saw repo shut down on the 2008 crisis. Wall St runs on money. . OVERNIGHT money. They lever up to inventory securities for trading. If they can't get overnight money, they can't purchase securities. And if they can't unload what they have, it means the buy-side isn't taking on more either. Accounts settle overnight. This includes things like payrolls and bill pay settlements. If a bank doesn't have enough cash to payout what its customers need to pay out, it borrows. At least one and probably more than one banks are insolvent. That's what's going on. First, it can't be one or two banks that are short. They'd simply call around until they found someone to lend. But they did that, and even at markedly elevated rates, still, NO ONE would lend them the money. That tells me that it's not a problem of a couple of borrowers, it's a problem of no lenders. And that means that there's no bank in the world left with any real liquidity. They are ALL maxed out. But as bad as that is, and that alone could be catastrophic, what it really signals is even worse. The lending rates are just the flip side of the coin of the value of the assets lent against. If the rates go up, the value goes down. And with rates spiking to 10%, how far does the value fall? Enormously! And if banks had to actually mark down the value of the assets to reflect 10% interest rates, then my god, every bank in the world is insolvent overnight. Everyone's capital ratios are in the toilet, and they'd have to liquidate. We're talking about the simultaneous insolvency of every bank on the planet. Bank runs. No money in ATMs, Branches closed. Safe deposit boxes confiscated. The whole nine yards, It's actually here. The scenario has tended to guide toward for years and years is actually happening RIGHT NOW! And people are still trying to say it's under control. Every bank in the world is currently insolvent. The only thing keeping it going is printing billions of dollars every day. Financial Armageddon isn't some far off future risk. It's here. Prepare accordingly. This fiat system has reached the end of the line, and it's not correct that fiat currencies fail by design. The problem is corruption and manipulation. It is corruption and cheating that erodes trust and faith until the entire system becomes a gigantic fraud. Banks and governments everywhere ARE the problem and simply have to be removed. They have lost all trust and respect, and all they have left is war and mayhem. As long as we continue to have a majority of braindead asleep imbeciles following orders from these psychopaths, nothing will change. Fiat currency is not just thievery. Fiat currency is SLAVERY. Ultimately the most harmful effect of using debt of undefined value as money (i.e., fiat currencies) is the de facto legalization of a caste system based on voluntary slavery. The bankers have a charter, or the legal *right*, to create money out of nothing. You, you don't. Therefore you and the bankers do not have the same standing before the law. The law of the land says that you will go to jail if you do the same thing (creating money out of thin air) that the banker does in full legality. You and the banker are not equal before the law. ALL the countries of the world; Islamic or secular, Jewish or Arab, democracy or dictatorship; all of them place the bankers ABOVE you. And all of you accept that only whining about fiat money going down in exchange value over time (price inflation which is not the same as monetary inflation). Actually, price inflation itself is mainly due to the greed and stupidity of the bankers who could keep fiat money's exchange value reasonably stable, only if they wanted to. Witness the crash of silver and gold prices which the bankers of the world; Russian, American, Chinese, Jewish, Indian, Arab, all of them collaborated to engineer through the suppression and stagnation of precious metals' prices to levels around the metals' production costs, or what it costs to dig gold and silver out of the ground. The bankers of the world could also collaborate to keep nominal prices steady (as they do in the case of the suppression of precious metals prices). After all, the ability to create fiat money and force its usage is a far more excellent source of power and wealth than that which is afforded simply by stealing it through inflation. The bankers' greed and stupidity blind them to this fact. They want it all, and they want it now. In conclusion, The bankers can create money out of nothing and buy your goods and services with this worthless fiat money, effectively for free. You, you can't. You, you have to lead miserable existences for the most of you and WORK in order to obtain that effectively nonexistent, worthless credit money (whose purchasing/exchange value is not even DEFINED thus rendering all contracts based on the null and void!) that the banker effortlessly creates out of thin air with a few strokes of the computer keyboard, and which he doesn't even bother to print on paper anymore, electing to keep it in its pure quantum uncertain form instead, as electrons whizzing about inside computer chips which will become mute and turn silent refusing to tell you how many fiat dollars or euros there are in which account, in the absence of electricity. No electricity, no fiat, nor crypto money. It would appear that trust is deteriorating as it did when Lehman blew up . Something really big happened that set off this chain reaction in the repo markets. Whatever that something is, we aren't be informed. They're trying to cover it up, paper it over with conjured cash injections, play it cool in front of the cameras while sweating profusely under the 5 thousands dollar suits. I'm guessing that the final high-speed plunge into global economic collapse has begun. All we see here is the ripples and whitewater churning the surface, but beneath the surface, there is an enormous beast thrashing desperately in its death throws. Now is probably the time to start tying up loose ends with the long-running prep projects, just saying. In other words, prepare accordingly, and Get your money out of the banks. I don't care if you don't believe me about Bitcoin. Get your money out of the banks. Don't keep any more money in a bank than you need to pay your bills and can afford to lose.











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The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more

The FBI released a summary of its file from the Hillary Clinton email investigation on Friday, showing details of Clinton's explanation of her use of a private email server to handle classified communications. The release comes nearly two months after FBI Director James Comey announced that although Clinton's handling of classified information was "extremely careless," it did not rise to the level of a prosecutable offense. Attorney General Loretta Lynch announced the next day that she would not pursue charges in the matter. "We are making these materials available to the public in the interest of transparency and in response to numerous Freedom of Information Act (FOIA) requests," the FBI noted in a statement sent to reporters with links to the documents. The documents include notes from Clinton's July 2 interview with agents, as well as a "factual summary of the FBI's investigation into this matter," according to the FBI release. Throughout her interview with agents, Clinton repeatedly said she relied on the career professionals she worked with to handle classified information correctly. The agents asked about a series of specific emails, and in each case Clinton said she wasn't worried about the particular material being discussed on a nonclassified channel.