What is happening with the House funding vote?

House leaders advanced a plan to reopen closed agencies, but leadership signaled no quick House funding vote while Democrats press for ICE restrictions. A two-week DHS carve-out is under discussion. If both chambers align, agencies can reopen. If talks drag, government shutdown risk stays elevated this week.

How could a US government shutdown affect Japan markets?

It can lift risk aversion, push US yields lower, and drive USD/JPY volatility into the Tokyo open. Some US data may be delayed, reducing guidance for traders in Japan. Sentiment toward exporters can soften even if direct federal revenue is small, pressuring near-term equity performance.

What are ICE restrictions and why do they matter?

ICE restrictions refer to limits on immigration enforcement policies that some Democrats want in exchange for funding. They matter because they are a core sticking point. Until Congress resolves the policy language, the path to a full funding deal is unclear, keeping government shutdown risk alive for markets.

What should Japan investors watch if DHS stopgap funding passes?

Confirm the scope and length of DHS stopgap funding, then check whether other agencies reopen. Watch USD/JPY around related votes, Treasury yield shifts, and any changes to the ICE policy language. If the Senate signals support quickly, relief can build. If not, headline risk and volatility may persist.

Law and Government

February 04: House Advances Bill to Reopen Agencies as ICE Dispute Looms

ByDanny Kontos February 4, 2026February 4, 2026

Government shutdown risk remains even as House leaders push a bill to reopen closed US agencies. A key GOP holdout shifted, but Democrats seek ICE restrictions and a two-week DHS stopgap funding carve-out. Talks are active and timelines are fluid. For Japan-based investors, prolonged uncertainty can dent risk appetite, delay US data, and sway USD/JPY before the Tokyo open. We outline today’s moves, why they matter in Japan, the likely timeline, and clear steps to manage near-term market risk.