Government Shuts Down as Congress Misses Deadline

The White House ordered federal agencies to suspend a vast array of activities shortly before midnight, after a day of frantic legislative volleying left Senate Democrats and House Republicans at an impasse over government spending and the 2010 health-care law. The next steps to resolve the stalemate remained unclear.

Markets that have slipped recently face a test Tuesday, given that a larger deadline for Congress—over the need to raise the nation's borrowing limit—is less than a month away.

Many federal workers reporting to their agencies Tuesday morning will undertake a half-day of shutdown preparations before more than 800,000 employees in the government's workforce of about 2.9 million are sent home. While essential functions such as law enforcement and air-traffic control will continue, a large number of federal activities, among them Internal Revenue Service audits and surveillance for flu outbreaks, will be suspended. 

"Unfortunately, Congress has not fulfilled its responsibility. It has failed to pass a budget and, as a result, much of our government must now shut down until Congress funds it again,'' President Barack Obama said in a video message to military and defense personnel around the world.

He added that personnel in uniform would remain on duty. "The threats to our national security have not changed, and we need you to be ready for any contingency,'' he said.

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