A proposal from Republicans in the House of Representatives has been rejected by Democrats, continuing the shutdown of the federal government.
The proposal would have raised the debt ceiling beyond the current $16.7tn, but Democrats rejected the suggested amendments to Obama’s healthcare law.
If congress cannot reach a deal by Thursday, the US for the first time will default on its debt.
"Unfortunately, the latest proposal from House Republicans does just that in a partisan attempt to appease a small group of Tea Party Republicans who forced the government shutdown in the first place," said White House spokeswoman Amy Brundage.