WASHINGTON—U.S. Citizenship and Immigration Services, the agency that oversees legal immigration, is sending furlough notices to about 69% of its staff and preparing to suspend services in August because Congress and the Trump administration can’t agree on terms of a $1.2 billion infusion.

Lawmakers have been in talks with the Trump administration over several emergency funding proposals, according to congressional aides familiar with the talks, but they aren’t close to a deal and are uncertain about whether they could pass…

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