Democrats, White House strike spending deal that would avert government shutdown

WASHINGTON (AP) — Democrats and the White House struck a deal to avert a partial government shutdown and temporarily fund the Department of Homeland Security as they consider new restrictions for President Donald Trump’s surge of immigration enforcement. But passage was delayed late Thursday as leaders scrambled to win enough support for the agreement before the midnight Friday deadline.

As the country reels from the deaths of two protesters at the hands of federal agents in Minneapolis, the White House agreed to separate homeland security funding from a larger spending bill and fund the department for two weeks while they debate Democratic demands for curbs on the U.S. Immigration and Customs Enforcement agency.

“Republicans and Democrats have come together to get the vast majority of the government funded until September” while extending current funding for Homeland Security, Trump said in a social media post Thursday evening. He encouraged members of both parties to cast a “much needed Bipartisan ‘YES’ vote.”

Still, all senators weren't yet on board. Leaving the Capitol just before midnight Thursday after hours of negotiations, Senate Majority Leader John Thune said there were “snags on both sides” as he and Democratic leader Chuck Schumer tried to rally support.

“Hopefully people will be of the spirit to try and get this done tomorrow,” Thune said.

Sen. Lindsey Graham, R-S.C., said late Thursday that he was one of the senators objecting. He said Immigration and Customs Enforcement agents were being treated unfairly. He has also opposed House language that would repeal a new law that gives senators the ability to sue the government for millions of dollars if their personal or office data is accessed without their knowledge.

Democrats had requested the two-week extension and say they are prepared to block the wide-ranging spending bill if their demands aren’t met, denying Republicans the votes they need to pass it and potentially triggering a shutdown.

The rare bipartisan talks between Trump and his frequent adversary, Senate Democratic leader Chuck Schumer, came after the fatal shooting of 37-year-old Alex Pretti in Minnesota over the weekend and calls by senators in both parties for a full investigation. Schumer called it “a moment of truth.”

“The American people support law enforcement. They support border security. They do not support ICE terrorizing our streets and killing American citizens,” Schumer said.

The standoff has threatened to plunge the country into another shutdown, just two months after Democrats blocked a spending bill over expiring federal health care subsidies. That dispute closed the government for 43 days as Republicans refused to negotiate.

That shutdown ended when a small group of moderate Democrats broke away to strike a deal with Republicans, but Democrats are more unified this time after the fatal shootings of Pretti and Renee Good by federal agents.

Democrats have laid out several demands, asking the White House to “end roving patrols” in cities and coordinate with local law enforcement on immigration arrests, including requiring tighter rules for warrants.

They also want an enforceable code of conduct so agents are held accountable when they violate rules. Schumer said agents should be required to have “masks off, body cameras on” and carry proper identification, as is common practice in most law enforcement agencies.

The Democratic caucus is united in those “common sense reforms,” and the burden is on Republicans to accept them, Schumer said.

“Boil it all down, what we are talking about is that these lawless ICE agents should be following the same rules that your local police department does,” said Democratic Sen. Tina Smith of Minnesota. “There has to be accountability.”

Earlier on Thursday, Tom Homan, the president’s border czar, stated during a press conference in Minneapolis that federal immigration officials are developing a plan to reduce the number of agents in Minnesota, but this would depend on cooperation from state authorities.

Negotiations down the road on a final agreement on the Homeland Security bill are likely to be difficult.

Democrats want Trump’s aggressive immigration crackdown to end. “If the Trump administration resists reforms, we shut down the agency,” said Connecticut Sen. Richard Blumenthal.

“We need to take a stand,” he said.

But Republicans are unlikely to agree to all of the Democrats' demands.

North Carolina Sen. Thom Tillis said he is opposed to requiring immigration enforcement officers to show their faces, even as he blamed Homeland Security Secretary Kristi Noem for decisions that he said are “tarnishing” the agency’s reputation.

“You know, there’s a lot of vicious people out there, and they’ll take a picture of your face, and the next thing you know, your children or your wife or your husband are being threatened at home,” Tillis said.

South Carolina Sen. Graham said some of the Democratic proposals “make sense,” such as better training and body cameras. Still, he said he was putting his Senate colleagues “on notice” that if Democrats try to make changes to the funding bill, he would insist on new language preventing local governments from resisting the Trump administration’s immigration policies.

“I think the best legislative solution for our country would be to adopt some of these reforms to ICE and Border Patrol,” Graham posted on X. But he said that the bill should also end so-called “sanctuary city” policies.

Across the Capitol, Speaker Mike Johnson, R-La., told The Associated Press on Thursday that he had been “vehemently opposed” to breaking up the funding package, but “if it is broken up, we will have to move it as quickly as possible. We can’t have the government shut down.”

On Thursday evening, at a premiere of a movie about first lady Melania Trump at the Kennedy Center, Johnson said he might have some “tough decisions” to make about when to bring the House back to Washington to approve the bills separated by the Senate, if they pass.

“We’ll see what they do,” Johnson said.

House Republicans have said they do not want any changes to the bill they passed last week. In a letter to Trump on Tuesday, the conservative House Freedom Caucus wrote that its members stand with the Republican president and ICE.

“The package will not come back through the House without funding for the Department of Homeland Security,” they wrote.

Associated Press writers Lisa Mascaro, Stephen Groves, Joey Cappelletti, Michelle L. Price and Darlene Superville contributed to this report.

Sen. Thom Tillis, R-N.C., speaks with reporters following a closed-door meeting with fellow Republicans on spending legislation that funds the Department of Homeland Security and a swath of other government agencies, at the Capitol in Washington, Wednesday, Jan. 28, 2026. (AP Photo/J. Scott Applewhite)

With a partial government shutdown looming by week's end, Sen. Lisa Murkowski, R-Alaska, a member of the Senate Appropriations Committee, is surrounded by reporters following a closed-door Republican meeting on spending legislation that funds the Department of Homeland Security and a swath of other government agencies as the country reels from the deaths of two people at the hands of federal agents in Minneapolis, at the Capitol in Washington, Wednesday, Jan. 28, 2026. (AP Photo/J. Scott Applewhite)

President Donald Trump speaks during the launch of a program known as Trump Accounts at the Andrew W. Mellon Auditorium, Wednesday, Jan. 28, 2026, in Washington. (AP Photo/Jacquelyn Martin)

Senate Minority Leader Chuck Schumer, D-N.Y., waits to speak to reporters following a closed-door meeting with fellow Democrats at the Capitol in Washington, Wednesday, Jan. 28, 2026. (AP Photo/J. Scott Applewhite)

CREIGHTON, Neb. (AP) — Rick and Jane Saint John chose to live in the small town of Creighton, Nebraska, for one main reason: its hospital.

The couple has a child with nonverbal autism and epilepsy who requires up to three hospital visits a week. And Creighton's critical access hospital has been a lifeline for Jane: not only is she employed there, but three years ago, doctors saved her life when she contracted bacterial pneumonia. If she had waited another day for care, doctors said, her organs would have begun to shut down.

“And if we had had to drive the hour to the Yankton (South Dakota) hospital," Rick Saint John said, his voice breaking with emotion, "it could have cost her her life.”

So the Saint Johns were shocked to hear that Avera Creighton Hospital faces financial peril. A $50 billion government fund meant to transform rural health care will do little to help. It's a problem that millions of Americans in rural areas are awakening to as they realize there's no windfall coming for the vulnerable hospitals near their homes.

Hundreds of rural hospitals across the country are facing closures after years of funding problems. The issue was compounded last summer by the Trump administration's massive cuts to Medicaid, the government's safety net for low-income Americans, whose reimbursements have long helped hospitals meet their bottom lines.

Outcry over the funding cuts prompted Republican lawmakers to create $50 billion in new rural health grants, but critics say that funding is intended for innovative health care delivery solutions — not propping up hospitals buckling under current pressures.

“It won’t pay to keep the lights on. And it won’t turn the lights back on once they’ve been turned off,” said Dr. Ben Young, an infectious disease specialist and policy expert with public health advocacy group Wellness Equity Alliance.

Rural Americans’ health care worries reflect broader national concerns about access and rising prices of care as the cost of living spikes — anxieties that could prove pivotal in this year’s midterm elections.

The $50 billion Rural Health Transformation Program included in President Donald Trump's tax-and-spending law last year was billed by Republicans as a way to help hospitals in rural areas. Last summer, Health Secretary Robert F. Kennedy Jr. touted it as the “biggest infusion in history” for rural hospitals and pledged it will “restore and revitalize these communities.”

Hospitals and health industry experts have warned that while the fund — $10 billion per year allocated across all states for five years — offers some support to struggling rural hospitals, it won’t save them. One reason is that the sum doesn't come close to offsetting the $137 billion that rural hospitals expect to lose over the next decade, according to health research nonprofit KFF. Millions of people are expected to lose Medicaid benefits as a result of new Medicaid work requirements going into effect in 2027 — changes the Trump administration has maintained will crack down on fraudsters rather than cut off eligible enrollees.

Administrators say the new $50 billion fund is not meant to shore up ailing rural hospitals or maintain the status quo, but to transform rural health care through tech, workforce and other innovations. Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz in a December video said it “gives states the tools to design solutions that last, not Band-Aids that fail.”

The White House echoed that Wednesday, saying the fund is intended to fund “big ideas” to improve rural health care access long-term.

“Decades of mismanagement by career politicians in Washington have left rural communities with limited care options," White House spokesman Kush Desai said.

State applications show a wide range of proposals. Some pitches sought to improve emergency medical services and modernize rural facilities, while others looked to make school lunches healthier, expand physical fitness programs, beef up telehealth and expand AI-driven technologies to help monitor patients.

Avera Creighton Hospital CEO Theresa Guenther argues her hospital is not in danger of closing. but conceded that Medicaid cuts will be painful — a sentiment shared by most rural hospitals, she said.

“Medicaid cuts will have an impact to us, and we — as well as many others — will have to figure out what that looks like moving forward,” she said. Her hospital hopes to get a piece of the $50 billion fund to help manage patients' chronic diseases — like diabetes — and to help cover workforce costs.

Nebraska, which received $218 million for the rural health grants' first installment, plans to spend some $90 million on healthier food options at schools, recruiting more health care workers and mobile sensors to remotely monitor chronically ill patients in rural areas, among other things. But for rural critical access hospitals at risk of closing, it offers $10 million to “right size” them by getting rid of inpatient care, where bed occupancy is typically low.

Republican state Sen. Barry DeKay said hospitals like Creighton's are vital, despite it's low occupancy rate. The hospital is in his district; even his mother received life-extending care there following a hip replacement. He's worried that the Medicaid cuts could hurt all the state's rural hospitals.

“I'll try to be working as hard as I can to get as much money to rural hospitals — whether it's in my district or any other rural district in the state,” he said.

Rick Saint John acknowledged he knows little about how Nebraska will use the federal funds, but he thinks it should go to helping hospitals like Creighton’s remain intact.

“The hospital is very important to this community, and for more than just medical care,” he said, citing job losses if the hospital loses services or closes.

The fund has seen pushback from hospital groups over an issue that's shaping up as important for 2026 voters.

The Colorado Hospital Association sent a letter in December to state lawmakers accusing them of ignoring input from rural hospitals during the application process.

The Nebraska Hospital Association, which endorsed Republican U.S. Sen. Deb Fischer’s 2024 reelection bid based on her advocacy for rural health care, has criticized both the cuts and the $50 billion fund. Fischer voted last summer for the Medicaid cuts.

That and other efforts by the state to limit Medicaid spending sends a message “that access to health care is not a priority," the group said.

Some Republican state lawmakers across the country have expressed unease with parts of the fund and have sought ways to use it to help struggling rural hospitals.

Under pressure, some rural states are making their own moves to help.

Wyoming enacted a law allowing rural hospitals to file Chapter 9 bankruptcy, normally reserved for financially stressed cities to reorganize debts and repay creditors while protecting them from legal action.

In North Dakota, during a special session to allocate the state’s federal rural health funds, the Republican-led Legislature passed an unrelated bill that aims to rescue a rural hospital with a low-interest loan of up to $5 million administered through the state-owned bank.

It's hoped the plan will keep the hospital open in a vast rural area where it employs 5% of the surrounding county's residents, hospital board member Matt Hager said.

Young, the expert with Wellness Equity Alliance, sees dark days ahead for rural hospitals.

“I am not optimistic in the short term,” he said. “Because these hospitals are facing immediate financial shortfalls, are barely financially operating currently, and they need operating support now.”

Swenson reported from New York. Associated Press writer Jack Dura contributed to this report from Bismarck, North Dakota.

Avera Creighton Hospital CEO Theresa Guenther is seen in her office, Feb. 24, 2026, in Creighton, Neb. (AP Photo/Margery A. Beck)

Nebraska State Sen. Barry DeKay, R-Niobrara, is seen on the floor of the Nebraska State Capitol, Feb. 5, 2026, in Lincoln, Neb. (AP Photo/Margery A. Beck)

Jane and Rick Saint John hold hands on Feb. 24, 2026, as they recall how Jane received life-saving care three years ago at Avera Creighton Hospital, in rural Creighton, Neb. (AP Photo/Margery A. Beck)

Jane and Rick Saint John discuss how important their local hospital, Avera Creighton Hospital, is in their rural community, Feb. 24, 2026, in Creighton, Neb. (AP Photo/Margery A. Beck)

Avera Creighton Hospital is seen on Feb. 24, 2026, in Creighton, Neb. (AP Photo/Margery A. Beck)