Budget Talks Enter Final Hours, Shutdown Looms

Congressional leaders and the White House have failed to agree on a budget plan for the remainder of the fiscal year, despite the fact that the government will shut down at the end of Friday without Congressional action.

On Thursday, the House passed a continuing resolution that would allow the government to operate for an additional week, albeit with $12 billion in cuts, and fund the Pentagon for the remainder of the year. However, the White House, citing the bill’s controversial policy riders, has indicated that they will veto the resolution if it’s passed through the Senate.

Later that night, President Barack Obama told reporters that “some progress” has been made in negotiations, but that he was “not yet prepared to express wild optimism.”

Negotiations, Obama said, would continue through the night.

Senate Majority Leader Harry Reid (D-Nev.) and House Speaker John Boehner (R-Ohio) signaled a similar, cautious outlook.

“We have narrowed the issues, however, we have not yet reached an agreement,” a joint statement reads.

If the government shuts down, non-essential government services will cease and federal workers will either be barred from working or have their pay backlogged. The White House has expressed fear that a shutdown could damage the economy’s delicate recovery.