WASHINGTON (AP) -- The Obama administration warned Wednesday that a federal shutdown would undermine the economic recovery, delay pay to U.S. troops fighting in three wars, slow the processing of tax returns and limit small business loans and government-backed mortgages during peak home buying season.
The dire message, delivered two days before the federal government's spending authority expires, appeared aimed at jolting congressional Republicans into a budget compromise. Billions of dollars apart, congressional negotiators were working to strike a deal by Friday to avert a shutdown by setting spending limits through the end of September. The last such shutdown took place 15 years ago and lasted 21 days.
President Barack Obama telephoned House Speaker John Boehner on Wednesday, and Boehner's office said the speaker told Obama he was hopeful a deal could be reached.