The Bellevue Compass

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After a partial government shutdown lasting from Saturday to Tuesday, the House voted to approve spending through September for the previously-shuttered departments whose funding had lapsed. The final vote to send the funding package passed 217-214, with 21 Republicans voting against it and 21 Democrats voting for it.  President Trump signed the bill yesterday evening.

The deal that pushed the bills through was negotiations between the White House and Senate Democrats, who ultimately agreed to strip the DHS bill and apply a two-week funding patch instead of the original House-voted version. The funding patch allows for only nine more days of funding for the Department of Homeland Security. We’re breaking it down below.  

What’s Going on in Congress

Congress now has only nine days to determine a path forward for DHS funding. Competing ideals are at the core of the issue, with Democrats pushing for a ban on federal agents wearing masks and the tightening of warrant requirements, while the GOP conference is interested in restricting funding for sanctuary cities. It’s important to note that Homeland Security funding is not just ICE—a lapse would affect FEMA, TSA, the Coast Guard, and other agencies whose funding is attached to the DHS. 

Both parties are at odds about the use of an additional short-term punt for funding, with Republicans arguing that a continuing resolution may be necessary as negotiations continue. Conversely, Democrats are not on board with the idea. At the moment, there’s no clear indication of where the conferences stand on how to resolve the issue. 

Aside from Homeland Security funding, another sticking point for the passage of the appropriations bills through the Senate was the GOP’s desire to tack on language from the SAVE Act, which would require voter identification in all 50 states. Coupled with President Trump’s recent call for nationalizing elections, elections are once again becoming a rallying cry for the GOP.

In exchange for voting forward the group of appropriations bills, Reps Anna Paulina Luna (R-Fla) and Rep. Tim Burchett (R-Tenn.) reportedly were given assurances that the Senate would use a standing filibuster to get the SAVE Act passed, but Thune is wary of deploying the tactic, which could tie up both chambers’ floors for weeks. As for his thoughts on the bill itself, Majority Leader Thune ultimately rejected President Trump’s call for the bill, stating that he’s for voter identification, but not on board with federalizing elections. How they’re run, he said, is a state’s prerogative. 

The Sector Breakdown

The Pennsylvania Impact

While the partial shutdown thankfully didn’t last long enough f to drastically affect Pennsylvania, the state is facing other federally charged issues, including an increasing response to ICE presence. In response to surging arrests across the country, the Philly Defender Association has launched a new immigration legal unit to oversee the influx of cases related to immigration in the region.   DA Krasner has also joined a national Fight Against Federal Overreach coalition (F.A.F.O) to hold federal authorities accountable.  (https://phillyda.org/news/district-attorney-larry-krasner-reformed-city-prosecutors-announce-the-launch-of-the-f-a-f-o-coalition-to-support-prosecution-against-federal-agents-who-violate-state-laws/)

Further stoking concerns, it was revealed earlier this week that ICE had purchased an $87M warehouse in Berks County (https://www.spotlightpa.org/berks/2026/02/ice-warehouse-berks-county-purchase-federal-government/).

In the midst of the unrest, Pennsylvania’s legislators have joined a national call for the removal of U.S. Homeland Security Secretary Kristi Noem. During a press conference on Thursday, Reps Brendan Boyle and Dwight Evans signaled for Noem’s removal, citing the “at-times lethal violence that has increasingly come to characterize federal immigration enforcement”, according to City & State PA. All seven Democratic members of Congress from Pennsylvania have been united in their opposition of ICE’s enforcement tactics. 

Last week, Philadelphia City Council introduced a package of bills called ICE OUT, with legislation intended to make it more difficult for ICE to operate without rules in the city, including restricting the use of masks and a bill codifying Philadelphia’s status as a “sanctuary city”. In the past, the city has avoided the label to avoid losing funding and being targeted by the Trump Administration, rebranding itself instead as a “welcoming city”. To codify the city as a “sanctuary city”, categorized by local law enforcement not participating in ICE’s 287(g) program, would put Philadelphia in the crosshairs of the Administration as tensions mount. 

Meanwhile, as the impact of H.R. 1, or the “One Big Beautiful Bill,” continues to spread, roughly 144,000 Pennsylvanians who receive SNAP benefits are being affected, or will soon be. Some will lose benefits altogether under the new framework, and others will see benefits substantially reduced. In Philadelphia alone, 45,000 people will be affected. Among the changes to the law that are impacting residents are the work requirement and age changes—previously, anyone who reached age 55 could access SNAP benefits without the 20-hour a week work requirement. Now, the age has been kicked up to 64.  

As federal changes wreak havoc on funding for social services and benefits like SNAP, Pennsylvania is entering a new budget cycle. Yesterday, Governor Shapiro gave his 2026-27 Budget Address, and mentioned the federal government’s continued attempts to withhold funding from states like Pennsylvania. He has filed over a dozen lawsuits against the Administration this year alone. In his remarks, Shapiro said, “Now is a time when we need to stand up together for our commonwealth – and be prepared should they try to take away more of what is owed to us,” Shapiro said, later adding: “We need to prepare ourselves should they continue to walk away from those commitments.”

To read a full breakdown and analysis of the budget from Bellevue Strategies, click here. 

🔥 What We’re Watching

Did You Know? Ten Oscar-winning films were set or shot in Pennsylvania, including Silence of the Lambs (1991) (filmed in and around Pittsburgh), Silver Linings Playbook (2012), Fences (2016), and of course, Rocky (1976).

Till next time,