The U.S. government shutdown deadline is approaching; Trump spoke with the governor of Minnesota and agreed to consider reducing the number of ICE personnel.

As the deadline for a partial shutdown of the U.S. federal government approaches this Saturday, President Trump has shown rare signs of compromise in his immigration enforcement strategy, hoping to ease tensions in Minnesota sparked by a federal law enforcement shooting incident.

According to CCTV News, on January 26 local time, President Trump stated in a post that he spoke with Minnesota Governor Tim Walz that day. Trump said the two had a "very good" conversation and "seem to think similarly."

On the same day, Walz's office issued a statement saying that Trump agreed to consider reducing the number of federal agents in Minnesota and promised to discuss with the Department of Homeland Security to ensure that state officials would be able to investigate the January 24 shooting of U.S. citizen Alex Pretti by federal immigration enforcement officers.

Trump said he would send Border Affairs Director Tom Homan to Minnesota to work with local officials on the January 24 shooting incident. The White House said at a press briefing that Trump outlined a plan during the call with Walz to restore order in the state.

This statement marks a clear shift from the White House's previous hardline stance. The adjustment in strategy comes at a critical moment as Congressional budget negotiations have reached an impasse. Impacted by the Minneapolis shooting, Senate Democrats have made it clear that unless there are major changes to the Department of Homeland Security (DHS) funding provisions and added oversight restrictions, they will refuse to pass a budget bill that includes $1.3 trillion in spending.

This political standoff has significantly increased market concerns about a government shutdown. If the two parties fail to reach a consensus before Saturday midnight, key departments such as the Pentagon and DHS may face funding cut-offs, and hundreds of thousands of federal employees could be forced to take leave, directly impacting short-term economic activity and market sentiment.

Trump's immigration enforcement strategy takes a sharp turn

According to media reports, Trump said on social media that he had a "very good" call with Democratic Governor Walz and said the two "think similarly." This conciliatory tone stands in stark contrast to Trump's previous comments calling Walz "incompetent" and having a "low IQ."

The direct trigger for the Trump administration's shift was a series of deadly shootings in Minneapolis. On January 24, 37-year-old ICU nurse Alex Pretti was shot dead by federal agents; although the White House initially claimed Pretti threatened agents with a gun, video evidence contradicted that statement. Previously, on January 7, another U.S. citizen, Renée Nicole Good, was killed during an ICE arrest operation.

These consecutive tragedies have sparked nationwide protests and caused support for Trump's immigration enforcement strategy to fall to a historic low. Divisions have also emerged within the Republican party. Minnesota Republican gubernatorial candidate Chris Madel even suspended his campaign in protest. Even Trump's staunch ally, Texas Governor Greg Abbott, publicly said the White House needs to "recalibrate" its approach to ICE.

The White House is now attempting to strike a balance between calming public anger and maintaining a tough image. While Leavitt has emphasized a willingness to cooperate with local governments, he has also tried to blame previous chaos on Walz and Minneapolis Mayor Jacob Frey, and distanced himself from Deputy Chief Stephen Miller's extreme comments calling protesters "potential assassins."

Shutdown crisis re-emerges

The current political crisis has directly affected fiscal issues, as the federal agent shooting incident is an unexpected variable that has altered previous expectations for smooth passage of the budget proposal.

According to The Wall Street Journal, the Senate must pass six remaining annual appropriations bills to keep the government running through September, totaling about $1.3 trillion, including $64 billion for DHS. This funding covers $18.3 billion for Customs and Border Protection (CBP) and $10 billion for ICE.

However, the shooting incident in Minnesota has disrupted the legislative process. Although the Republican-controlled House approved the measures last week, the Senate’s voting prospects have worsened since the shooting.

Senate Democrats have clearly demanded to remove the DHS funding bill from the omnibus package to allow for a rewrite of immigration enforcement and oversight provisions, limiting the use of federal agents in cities, or else they will not support the proposal.

Republicans currently hold a 53 to 47 majority in the Senate, but under Senate rules, advancing the bill requires 60 votes, giving Democrats leverage to block its passage.

There is little time left before the Saturday 12:01 am deadline and the House is on recess this week; even if the Senate reaches a compromise, whether the House can return to vote in time remains highly uncertain. If a partial shutdown occurs, departments with funding such as the Justice Department and Commerce Department will remain unaffected, but DHS and the Pentagon will go idle, with non-essential operations suspended, further intensifying concerns about Washington’s governance capabilities in the market.

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