Negotiations in the US Congress to end the fiscal impasse are going down to the wire with both chambers blaming each other.
The US must raise its $16 trillion debt limit by October 17 or risk default.
President Obama has said although he believes the crisis will be resolved, time is running out.
After Democrats rejected a plan by the Republican-led House of Representatives, hours later it was altered and revived – but a vote was called off.
As the House bill faltered, lawmakers in the Senate announced they were reopening talks.
The chamber’s leaders are said to be working on a plan which could extend the government’s borrowing authority until February 7 and quickly re-open federal agencies.
The Democrat-led Senate accuses the Republicans of sticking with proposals including alterations to Obama’s healthcare reforms just to appease hardline conservatives.