House Speaker John Boehner and Senate Majority leader Harry Reid expressed disappointment on Thursday after a third round of talks on the federal budget failed to avert a shutdown of the government that would put hundreds of thousands of workers on leave.
The leaders said negotiations would resume this afternoon and that they would return to the White House for another meeting in the early evening.
The talks, which lasted more than one and a half hours at the White House were one in a series of developments throughout the day.
The House of Representatives passed a short term funding bill by a vote of 247 - 181 mostly along partisan lines. It would cut $12 billion from the federal budget and fund the military for the rest of the fiscal year. However earlier in the day, the White House said Obama would veto the bill.
The President has previously said that there is no need longer any need to make additional short term extensions since negotiators are closer than they have ever been to striking a deal.