What Happens If US Government Enters A Shutdown

The new US fiscal year begins on October 1, but sharp disagreements in the Republican Party over the scale of federal debt has prevented passage of the bills needed to keep the government funded and open.

The United States is heading toward a government shutdown this weekend with no foreseeable way out of a deadlock in Congress over hardline Republican calls for deep spending cuts.

The new US fiscal year begins on October 1, but sharp disagreements in the Republican Party over the scale of federal debt has prevented passage of the bills needed to keep the government funded and open.

The credit ratings agency Moody's warned this week that a shutdown would be "credit negative" for US sovereign debt, threatening its top-tier rating and raising the prospect of higher borrowing costs.