The Administration has backed the push for it (in part, to resolve an ongoing legal dispute with Microsoft, who also supports it), so it's pretty hard (though given Trump's other rapid reversals, not impossible) to see Trump causing a shutdown by vetoing the omnibus spending bill over it's inclusion.
proving once again the Microsoft does not care about the privacy of their users, and their lawsuit fighting this was not them standing up for their users as they claimed but instead was them pushing for a liability shield that would prevent users from using them
This should be the end of CLOUD services... Self Host or no Host should be the motto of the day
Trumps "rapid reversals" are conventional negotiation tactics.
Want to get a better price on a car after you think you have your best deal already worked out? Show up for the purchase closing and say you've changed your mind. Most likely they'll offer you more not to walk away at that point.
But what this really does is lets the US government work with a foreign government to bypass US laws and process to do whatever they want to US citizens. This feature is designed to be used creatively. Trump is thrilled about it.