With members of Congress still working to reach an agreement on spending, the U.S. government shut down at 12 a.m. ET on Tuesday.
Sylvia M. Burwell, director of the Office of Management and Budget, ordered executive agencies to shut down just before midnight on Monday.
"We urge Congress to act quickly to pass a Continuing Resolution to provide a short-term bridge that ensures sufficient time to pass a budget for the remainder of the fiscal year, and to restore the operation of critical public services and programs that will be impacted by a lapse in appropriations," the memo said.
"This is a very sad day for our country," Senate Majority Leader Harry Reid (D-Nev.) said on the Senate floor early Tuesday morning. Reid declared the Senate is in recess until 9:30 a.m. Tuesday.
An estimated 800,000 federal workers face furloughs because of the shutdown, though many were told to work a half day Tuesday.
Below, more from the AP:
WASHINGTON — For the first time in nearly two decades, the federal government staggered into a partial shutdown Monday at midnight after congressional Republicans stubbornly demanded changes in the nation's health care law as the price for essential federal funding and President Barack Obama and Democrats adamantly refused.
As Congress gridlocked, Obama said a "shutdown will have a very real economic impact on real people, right away," with hundreds of thousands of federal workers furloughed and veterans' centers, national parks, most of the space agency and other government operations shuttered.
He laid the blame at the feet of House Republicans, whom he accused of seeking to tie government funding to ideological demands, "all to save face after making some impossible promises to the extreme right wing of their party."
House Speaker John Boehner, R-Ohio, responded a short while later on the House floor. "The American people don't want a shutdown and neither do I," he said. Yet, he added, the new health care law "is having a devastating impact. ... Something has to be done."
The stock market dropped on fears that political deadlock between the White House and a tea party-heavy Republican Party would prevail, though analysts suggested significant damage to the national economy was unlikely unless a shutdown lasted more than a few days.
A few minutes before midnight, Budget Director Sylvia Burwell issued a directive to federal agencies to "execute plans for an orderly shutdown." While an estimated 800,000 federal workers faced furloughs, some critical parts of the government – from the military to air traffic controllers – would remain open.
Any interruption in federal funding would send divided government into territory unexplored in nearly two decades. Then, Republicans suffered grievous political damage and President Bill Clinton benefitted from twin shutdowns. Now, some Republicans said they feared a similar outcome.
If nothing else, some Republicans also conceded it was impossible to use funding legislation to squeeze concessions from the White House on health care. "We can't win," said Sen. John McCain, R-Ariz.
"We're on the brink," Sen. Barbara Mikulski, Md., said shortly after midday as the two houses maneuvered for political advantage and the Obama administration's budget office prepared for a partial shutdown, the first since the winter of 1995-1996.
On a long day and night in the Capitol, the Senate torpedoed one GOP attempt to tie government financing to changes in "Obamacare." House Republicans countered with a second despite unmistakable signs their unity was fraying – and Senate Democrats promptly rejected it, as well.
Defiant still, House Republicans decided to re-pass their earlier measure and simultaneously request negotiations with the Senate on a compromise. Some aides conceded the move was largely designed to make sure that the formal paperwork was on the Senate's doorstep as the day ended.
Whatever its intent, Senate Majority Leader Harry Reid, D-Nev., rejected it. "That closes government. They want to close government," he said of House Republicans.
As lawmakers squabbled, Obama spoke bluntly about House Republicans. "You don't get to extract a ransom for doing your job, for doing what you're supposed to be doing anyway, or just because there's a law there that you don't like," he said. Speaking of the health care law that undergoes a major expansion on Tuesday, he said emphatically, "That funding is already in place. You can't shut it down."
Some Republicans balked, moderates and conservatives alike.
Rep. Phil Gingrey of Georgia said it felt as if Republicans were retreating, given their diminishing demands, and Rep. Scott Rigell of Virginia said there was not unanimity when the rank and file met to discuss a next move.
Yet for the first time since the showdown began more than a week ago, there was also public dissent from the Republican strategy that has been carried out at the insistence of lawmakers working in tandem with GOP Sen. Ted Cruz of Texas.
Rep. Charles Dent, R-Pa., said he was willing to vote for stand-alone legislation that would keep the government running and contained no health care-related provisions. "I would be supportive of it, and I believe the votes are there in the House to pass it at that point," the fifth-term congressman said.
Other Republicans sought to blame Democrats for any shutdown, but Dent conceded that Republicans would bear the blame, whether or not they deserved it.
Hours before the possible shutdown, the Senate voted 54-46 to reject the House-passed measure that would have kept the government open but would have delayed implementation of the health care law for a year and permanently repealed a medical device tax that helps finance it.
In response, House Republicans sought different concessions in exchange for allowing the government to remain open. They called for a one-year delay in a requirement in the health care law for individuals to purchase coverage. The same measure also would require members of Congress and their aides as well as the president, vice president and the administration's political appointees to bear the full cost of their own coverage by barring the government from making the customary employer contribution.
"This is a matter of funding the government and providing fairness to the American people," said Boehner. "Why wouldn't members of Congress vote for it?"
The vote was 228-201, with a dozen Republicans opposed and nine Democrats in favor.
Unimpressed, Senate Democrats swatted it on a 54-46 party line vote about an hour later.
Obama followed up his public remarks with phone calls to Boehner and the three other top leaders of Congress, telling Republicans he would continue to oppose attempts to delay or cut federal financing of the health care law.
The impact of a shutdown would be felt unevenly.
Many low-to-moderate-income borrowers and first-time homebuyers seeking government-backed mortgages could face delays, and Obama said veterans' centers would be closed.
About 800,000 federal workers, many already reeling from the effect of automatic budget cuts, would be ordered to report to work Tuesday for about four hours – but only to carry out shutdown-related chores such as changing office voicemail messages and completing time cards.
Some critical services such as patrolling the borders and inspecting meat would continue. Social Security benefits would be sent, and the Medicare and Medicaid health care programs for the elderly and poor would continue to pay doctors and hospitals.
U.S. troops were shielded from any damage to their wallets when Obama signed legislation assuring the military would be paid in the in the event of a shutdown.
That had no impact on those who labor at other agencies.
"I know some other employees, if you don't have money saved, it's going to be difficult," said Thelma Manley, who has spent seven years as a staff assistant with the Internal Revenue Service during a 30-year career in government.
As for herself, she said, "I'm a Christian, I trust in God wholeheartedly and my needs will be met." She added, "I do have savings, so I can go to the reserve, so to speak."
Associated Press writers Alan Fram, Andrew Taylor, Laurie Kellman, Pauline Jelinek; Henry Jackson, Donna Cassata and Stacy A. Anderson in Washington and Marc Levy in Harrisburg, Pa., contributed to this report.
This story has been updated with quotes from Reid and more from the AP.
17/10/2013 05:30 BST
Obama Signs Budget Bill
From the White House:
On Thursday, October 17, 2013, the President signed into law:
H.R. 2775, the "Continuing Appropriations Act, 2014," which provides fiscal year 2014 appropriations for projects and activities of the Federal Government through Wednesday, January 15, 2014. The effective time for the continuing resolution begins on October 1, 2013. H.R. 2775 also extends the Nation's debt limit through February 7, 2014.
Read more here.
17/10/2013 04:58 BST
White House Receives Budget Legislation
The White House has received the legislation to re-open the government, raise the debt limit.— Brendan Buck (@Brendan_Buck) October 17, 2013
17/10/2013 04:13 BST
Frank Lautenberg's Widow Reaps $174,000 In Senate Budget Bill
Hours before Newark Mayor Cory Booker (D) won a New Jersey special senatorial election to succeed the late Sen. Frank Lautenberg (D), U.S. senators paid tribute to Lautenberg in their own way.
Rushed to approve a 35-page deal to fund the government and avert a debt default, senators allowed a few unrelated provisions to slip through.
One was section 146, guaranteeing $174,000 -- the equivalent of one year's salary -- to Lautenberg's widow, Bonnie Englebart Lautenberg.
-- Ashley Alman
17/10/2013 03:59 BST
Federal Employees Back To Work Thursday
Director of the Office of Management and Budget Sylvia Mathews Burwell released the following statement Wednesday evening:
"Now that the bill has passed the United States Senate and the House of Representatives, the President plans to sign it tonight and employees should expect to return to work in the morning. Employees should be checking the news and OPM's website for further updates."
17/10/2013 03:36 BST
Stenographer Removed For Shouting On House Floor
A shouting stenographer was removed from the House floor as lawmakers voted on a deal to reopen the government and avoid a debt crisis.
The stenographer began shouting as the the House approved the number of votes needed to pass the bill. According to reporters, she was yelling about God and Freemasons:
Protester dragged off House floor. Apparently one of the stenographers from the dais.— Chad Pergram (@ChadPergram) October 17, 2013
Stenographer seemed 2 b shouting + delusional on floor. "This is not a House divided." Escorted from floor during vote,— Alan Ota (@Alankota) October 17, 2013
An official house court stenographer took to the microphone & was screaming ab God. She was saying in the hall you can't serve two masters.— Jake Sherman (@JakeSherman) October 17, 2013
Stenographer removed shouting about God not being mocked and the free masons— Ben Jacobs (@Bencjacobs) October 17, 2013
-- Paige Lavender
17/10/2013 03:27 BST
House Vote: 285-144
The House voted 285-144 to reopen the federal government and raise the debt limit.
17/10/2013 03:18 BST
Republicans Score Amazing Own Goal
HuffPost's Arthur Delaney and Dave Jamieson report:
After voting this year to keep federal employees' pay frozen, Republicans in Congress have accidentally given many government workers their first raise in three years.
It's one of several unintended consequences of the Republican gambit to defund Obamacare by shutting down the government. It isn't a nominal raise, and it won't improve most workers' lives one bit. In fact, so far it's brought mostly misery and anxiety. But here's how it's a one-time raise.
Hundreds of thousands of federal workers have been off the job for two weeks due to the government shutdown. As part of the deal hatched Wednesday to reopen the government, Congress included a measure to pay those workers retroactively for the time they missed, as a matter of fairness, just as it has in the budget impasses of yesteryear. The rationale: federal workers shouldn't have to pay the price for Congress's failures.
But in a symbol of just how wasteful a government shutdown is, lawmakers -- many of whom complain that the federal workforce is bloated, and who haven't granted workers a single cost-of-living adjustment since 2010 -- have forced federal employees to perform two fewer weeks of work for the same salary, all due to congressional squabbling. That's a full pay period, amounting to 3.8 percent of annual wages.
17/10/2013 03:14 BST
House Passes Budget Deal
The House has voted to end the latest damaging battle of divided government in a polarized Congress.
17/10/2013 03:13 BST
House Has The Votes
There it is. House has required votes to end shutdown, avert default.— Sabrina Siddiqui (@SabrinaSiddiqui) 4 years ago
17/10/2013 03:05 BST
Mitch McConnell Wins The Praises Of... Democratic Leaders
HuffPost's Jennifer Bendery reports:
There was a lot of back-patting among Democratic leaders Wednesday after the Senate passed its bill to end the government shutdown and avert a debt default. But some of their most effusive praise was for the leader of the other party, Senate Minority Leader Mitch McConnell (R-Ky.), who cut a deal with Senate Majority Leader Harry Reid (D-Nev.) at the eleventh hour to avoid catastrophe.
"The Republican leader's cooperation was essential to reach an accord," Reid told reporters, noting his sometimes rocky relationship with the GOP leader. "I've worked with McConnell for many years. The last bit has not been ... [long pause] good."
McConnell "stepped up to be [Reid's] partner when it really counted," said Senate Democratic Whip Dick Durbin (Ill.).