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Budget Dispute May Cause Government Shutdown, White House Warns

  • Obama administration wants automatic budget cuts stopped
  • Congress faces Sept. 30 deadline to fund U.S. government
National Park Service park ranger Richard Trott removes a closed sign at the Korean War Veterans Memorial in Washington, D.C., U.S., on Thursday, Oct. 17, 2013.

National Park Service park ranger Richard Trott removes a closed sign at the Korean War Veterans Memorial in Washington, D.C., U.S., on Thursday, Oct. 17, 2013.

The White House warned Tuesday against a shutdown of the U.S. government, as President Barack Obama’s spokesman insisted he would not sign a fiscal 2016 budget that locks in automatic spending cuts known as the sequester.

The government’s fiscal year ends Sept. 30, and without a new spending plan in place, a lapse in funding would have a “negative impact on our economy” and cause “instability” in financial markets, Josh Earnest, the White House press secretary, told reporters. He said Republicans wouldn’t be able to extend spending caps into 2016 and called on them to negotiate.