The Department of Homeland Security is operating without funding after negotiations between the Donald Trump administration and Senate Democrats collapsed. It's the second partial government shutdown of 2026, and nobody seems particularly eager to blink first.
DHS Shutdown Drags On: Prediction Markets Bet on March Funding Deal

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A Standoff With No End in Sight
The impasse centers on Democratic demands for changes to DHS operations following the killing of Alex Pretti by federal immigration agents in Minneapolis. Senate Democrats want reforms before they'll sign off on funding the department through September, while the White House has made it clear they're not interested in negotiating on those terms.
White House Border Czar Tom Homan told CNBC that the administration won't accept the conditions Democrats have put forward. Meanwhile, Senate Minority Leader Chuck Schumer (D-N.Y.) is pushing for DHS to operate under the same rules that govern other law enforcement agencies across the country.
With no deal materializing, lawmakers headed home for a week-long recess. Congress won't be back until February 23, which means the shutdown continues at least that long.
What the Smart Money Says
If you want to know when this mess might actually get resolved, the prediction markets have some thoughts. On Kalshi, the federally authorized betting platform, traders have put more than $1.6 million on the line betting on when DHS funding will be restored.
The crowd favorite? Funding returns before March 20, 2026, with bettors assigning that outcome a 74% probability. The "Before March 10, 2026" option sits at 53% probability, down 14 percentage points. The most optimistic scenario, funding restored before March 1, carries just a 17% probability.
There's also action on a separate contract asking how long this partial shutdown will drag on. The market expects it to last at least 20 days, and more than 45% of bettors think we're looking at over 30 days of government limbo.
So if you're keeping score at home: the politicians have left town, neither side is budging, and the betting markets think we're in this for the long haul. Welcome to 2026.
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