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White House: Prepare For A Shutdown

In a memo the Director of the Office of Management and Budget, told federal agencies to update their plans in the event members of Congress and the White House are unable to reach an agreement before September 30, the end of the fiscal year.

Washington (CNN) - With an impending budget deadline, the White House budget office directed federal agencies to prepare for a potential government shutdown.

In a memo, Sylvia Burwell, director of the Office of Management and Budget, told federal agencies to update their plans in the event members of Congress and the White House are unable to reach an agreement before September 30, the end of the fiscal year.

"There is enough time for Congress to prevent a lapse in appropriations, and the Administration is willing to work with Congress to enact a short-term continuing resolution to fund critical Government operations and allow Congress the time to complete the full year 2014 appropriations," Burwell wrote in the Tuesday letter. "However, prudent management requires that agencies be prepared for the possibility of a lapse."

Budget negotiations remain at a standstill with Republicans pushing for spending cuts and a repeal of the 2010 health care law and the president insisting he will not negotiate over the law.

"This country has worked too hard for too long to dig out of a crisis just to see their elected representatives here in Washington purposely cause another crisis," Obama said in a Monday speech. "Let's stop the threats. Let's stop the political posturing. Let's keep our government open. Let's pay our bills on time. Let's pass a budget."

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