White House and congressional negotiators met Tuesday afternoon but did not reach agreement on funding the federal government for the rest of the current fiscal year. Republicans suggested a one week Continuing Resolution, but key Democrats rejected the idea. At the same time Republicans said there has not been agreement with Democrats to cut $33 billion for the rest of the fiscal year.
Republicans say President Obama and the Democrats are ignoring the peril of the rising federal deficits and national debt. Democrats are saying that spending cuts sought by House Republicans are in response to the Tea Party movement, looking for deeper cuts.
Not only will the federal government run out of funding as of midnight this Friday, negotiators face additional pressures to extend and cut because government will reach its current borrowing limit of $14.3 trillion by mid May. Treasury Secretary Geithner says Congress could raise the debt limit, legislatively.