Obama: Shutdown will 'throw wrench' into economy

At about 11:50pm Monday, the White House budget office directs federal agencies to shut down, lacking funding from Congress.


Senate Majority Leader Harry Reid rejected the suggestion by House leaders calling for a conference committee, declaring: â??We will not go to conference with a gun to our head.â?? In a speech on the Senate floor at 11 p.m., Reid said he would not appoint negotiators to work with the House -- unless they passed a six-week emergency spending bill immediately -- without any provisions relating to delaying or defunding Obamacare.


With the clock ticking closer toward a government shutdown, congressional lawmakers are engaged in partisan ping pong over a budget to keep the federal government operating past midnight, the start of the new fiscal year.

The Senate has voted once again to reject a resolution by House Republicans that would fund the government but delay implementation of the Affordable Care Act. The Senate acted within moments to kill the latest House offering.

President Obama signed a bill that ensures the military will be paid during any shutdown.

House Republican leaders are moving to send the budget dispute to a conference committee. The House rules committee is meeting at 10:30 p.m. to decide on a rule to allow Majority Leader Eric Cantor to request a conference with the Senate.

ABC News reports that's an attempt to put pressure on Senate Majority Leader Harry Reid. The bottom line: The government would still shut down at midnight, at least until an emergency budget bill is passed.

A person familiar with the process tells ABC News that 11:30 pm Eastern is the latest that the director of the Office of Management and Budget can make the determination on directing agencies to begin implementing their shutdown plans .


Barack Obama is ramping up pressure on Republicans to avoid a post-midnight government shutdown. He says a shutdown would hurt the economy and hundreds of thousands of government workers.

He says it would "throw a wrench into the gears" of a recovering economy.

He urges the House to pass a short-term spending bill free of any conditions that would weaken the nation's 3-year-old health care law.

Obama spoke Monday after the Senate rejected a House proposal to delay implementation of the health care law. House Republicans were preparing to vote on another stop-gap spending measure, this one putting off a requirement that people must obtain health insurance.

The White House issued a veto threat to that proposal shortly after GOP leaders proposed it.

President Barack Obama says he's "not at all" resigned to a government shutdown. He says he expects to speak to congressional leaders during the day and in ensuing days to address budget and debt impasses.

The president addressed the looming shutdown after meeting with Israeli Prime Minister Benjamin Netanyahu. He also planned to speak from the White House briefing room Monday afternoon.

Obama's remarks follow the Democratic-led Senate's rejection Monday of a short-term spending proposal passed by the House. It contained a one-year delay on the nation's health care law.

The two chambers are trying to reach an agreement to avert a shutdown looming at midnight Monday.

The spending fight is a prelude to a bigger confrontation over the nation's credit limit, expected to hit in mid-October.

Click here for a live blog from ABC News with updates on the Shutdown Countdown.