Federal Government Orders Ice Presence in Minnesota
Last week, Secretary Kristi Noem announced that the Department of Homeland Security would be dispatching approximately 2,000 U.S. Immigration and Customs Enforcement (ICE) officers to Minnesota. The influx of ICE operations in Minnesota was quickly met with concern and opposition from Gov. Tim Walz and multiple local elected officials. That tension turned tragic when, on the morning of January 7, 2026, news broke of an ICE officer-involved shooting that resulted in the death of Renee Good, a 37-year Minneapolis resident.
The incident, which was recorded by numerous individuals, has been a lightning rod for an ongoing political debate and has touched off protests locally and across the country. Gov. Walz and Minneapolis Mayor Jacob Frey are urging restraint in the hope of avoiding a civil unrest similar to 2020 following the murder of George Floyd. However, the tension shows no sign of decreasing as Secretary Noem announced this morning that hundreds more ICE agents were being dispatched to Minnesota.
Minnesota House Members Testify at Congressional Hearing
On January 7, 2026, three Republican members of the Minnesota House of Representatives testified before Congress to share their perspective on ongoing allegations of fraud and misuse of public funds in Minnesota. Rep. Marion Rarick (R-Maple Lake), Rep. Kristin Robbins (R-Maple Grove), and Rep. Walter Hudson (R-Albertville) testified in front of the U.S. House Committee on Oversight and Government Reform, speaking amidst an ongoing federal investigation into fraud in Minnesota, including the misuse of COVID-19 dollars by the Feeding Our Future organization. This came on the heels of President Trump freezing federal grant payments to five Democratic-controlled states, including Minnesota, citing a lack of proper program integrity controls. Democrats labeled the hearing a “political exercise” while Republicans argued that the Walz administration has failed to protect taxpayers.
Federal Judge Blocks Trump Administration from Freezing Funds Supporting Children
On January 9, 2026, Judge Arun Subramanian, who serves as a federal judge for the Southern District of New York, granted a temporary restraining order blocking the Trump Administration’s attempt to withhold certain federal grant funds intended to support childcare subsidies and other programs supporting needy families and children. The Trump Administration had sought to withhold funds from the Child Care and Development Fund, which subsidizes childcare for children from low-income families; the Temporary Assistance for Needy Families (TANF) program, which provides cash assistance and job training; and the Social Services Block Grant, a smaller fund that provides money for a variety of programs.
The U.S. Department of Health and Human Services moved to block these grants from certain states, arguing that the states were funding subsidies for undocumented workers. Leaders of these states argue that it is unlawful to pause funds in this manner and are expected to continue to challenge the Trump Administration’s authority as the judicial process continues.
USDA Federal Grants Paused
The same day, U.S. Agriculture Secretary Brook Rollins announced that the United States Department of Agriculture (USDA) was freezing $129 million in payments to Minnesota. A letter was made available last Friday asking Gov. Walz and Minneapolis Mayor Frey to provide the federal agency with justification for all federal funds spent by the state from January 20, 2025 until present within 30 days. All federal payments to the state will also require payment justification.
What to Expect This Week on the Hill
Congress may move to fund the Department of Homeland Security (DHS) through a continuing resolution for the remainder of FY2026, according to multiple congressional aides and lawmakers familiar with the planning.
Republican and Democratic negotiators say that the wave of protests against ICE following Wednesday’s fatal shooting of Renee Good in Minneapolis has made it politically difficult to advance a full DHS spending bill that could secure 60 votes in the Senate. Democrats are pushing for new restrictions on ICE, while Republicans are resisting those efforts.
Senator Chris Murphy of Connecticut has been a leading voice urging Democrats to use leverage in the funding process to demand limits on the Trump administration’s authority over DHS. He said over the weekend that Democrats want to ensure DHS is operating in a safe and legal manner. At the same time, many Democrats remain reluctant to risk delaying government funding or triggering another shutdown.
The Senate
The Senate will hold an initial procedural vote today on the minibus appropriations package that passed the House last week with strong bipartisan support. The package includes the Energy and Water, Interior, and Commerce Justice Science bills.
Senate Majority Leader John Thune will also need to devote significant floor time to the Venezuela war powers resolution. Five Republicans joined Democrats last week to advance the measure, which drew a sharp response from President Trump. The Senate is expected to hold another procedural vote, followed by up to ten hours of debate and a vote on final passage.
Senate Minority Leader Chuck Schumer has indicated he does not want this process to interfere with passage of the minibus. A recess is scheduled at the end of the week, and leadership has said it will not be canceled.
The House
House and Senate negotiators released the next funding package Sunday night, which is expected to come to the floor this week. The House Rules Committee will meet Tuesday to consider the bill. This package includes Financial Services General Government and National Security State, previously known as SFOPS. Some conservative members have asked for additional time to review the legislation, which could affect the timing of floor action.
The bill includes several notable provisions. It requires Treasury to report on the Strategic Bitcoin Reserve and the federal digital asset stockpile. It limits OMB’s authority to pause Army Corps of Engineers water projects to 60 days. It also requires executive orders to include a statement of budgetary impact, including costs and benefits.
House attendance continues to be an operational challenge and will be worth watching as votes approach.
Also, of Note
The Supreme Court is expected to issue opinions on Wednesday, including two cases with major implications for Congress. One concerns the constitutionality of the Trump administration’s tariff regime. The other involves Section Two of the Voting Rights Act. A decision striking down that provision could force a redrawing of congressional maps across parts of the South.
We are tracking these developments in real time and will share updates as soon as there is movement that may affect your priorities. Please do not hesitate to reach out if you would like to talk through any of this in more detail.
