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On Monday, House Speaker John Boehner told reporters he hoped the Senatewould agree to a committee between the two chambers known as a conference"so we can resolve this for the American people".

"The House has voted to keep the government open but we also want basic

fairness for all Americans under Obamacare," he said.

But on Tuesday morning, the Senate voted 54-46 to reject the request for formalnegotiations to end the impasse.

Who is affected?

Continue reading the main story

State department will be able to operate for limited time

Department of defence will continue military operations

Department of education will still distribute $22bn (13.6bn) to public schools, but staffing is expected tobe severely hit

Department of energy - 12,700 staff expected to be sent home, with 1,113 remaining to oversee nucleararsenal

Department of health and human services expected to send home more than half of staff

The Federal Reserve, dept of homeland security, and justice dept will see little or no disruption

US Postal Services continue as normal

Smithsonian institutions, museums, zoos and many national parks will close

US shutdown in 60 seconds

Who will be affected

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Obama accused Republicans of demanding ransom over Obamacare

A shutdown would have "a very real economic impact on real people, rightaway," he said, adding it would "throw a wrench" into the US recovery.

"The idea of putting the American people's hard-earned progress at risk is theheight of irresponsibility, and it doesn't have to happen."

As the shutdown neared, the Senate's Democratic majority leader blamedRepublicans for the imminent halt to all non-essential government operations.

"It will be a Republican government shutdown, pure and simple," said Harry Reid,referring to the Republicans as "bullies".

The White House issued orders for government offices to start shutting down as the midnight deadlineapproached

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Tourism revenues are expected to take a hit as attractions such as the Statue of Liberty close down

National parks, museums, federal buildings and government services have been shut down indefinitely

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Some 700,000 federal workers have been sent home on unpaid leave

Some White House staff have been sent home, with all Smithsonian institutions in Washington closed

Mr Obama has signed legislation ensuring that military personnel would be paid.The defence department had advised employees that uniformed members of themilitary would continue on normal duty, but that large numbers of civilian workerswould be told to stay home.

Continue reading the main story

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US media

Michael Gerson, Washington Post: We are no longer seeing a revolt against the Republican leadership,or even against the Republican "establishment"; this revolt is against anyone who accepts the constraintsof political reality.

Editorial, Chicago Tribune: Once Republicans and Democrats stop grandstanding... we think there's aneasy solution to this impasse.Continue reading the main story

International media

Pierre-Yves Dugua, Le Figaro, France: The [US] is being humiliated by the inability of its politicalsystem to carry out its primary mission: to pass a budget.

Patrick Welter, Frankfurter Allgemeine Zeitung, Germany: The failure to reach agreement casts adark shadow on the next and more important forthcoming round in the fiscal row.

Andrew Coyne, National Post, Canada: The result of all this haggling, taken together, has been just thesort of balanced approach, mixing spending cuts and tax increases, that experts advise.

Under the shutdown, national parks and Washington's Smithsonian museums willclose, pension and veterans' benefit cheques will be delayed, and visa andpassport applications will go unprocessed.

Programmes deemed essential, such as air traffic control and food inspections,will continue.

The US government has not undergone a shutdown since 1995-96, whenservices were suspended for a record 21 days.

Republicans demanded then-President Bill Clinton agree to their version of abalanced budget.

As lawmakers grappled with the latest shutdown, the 17 October deadline forextending the government's borrowing limit looms even larger.

On that date, the US government will reach the limit at which it can borrowmoney to pay its bills, the so-called debt ceiling.

House Republicans have also demanded a series of policy concessions -including on the president's health law and on financial and environmentalregulations - in exchange for raising the debt ceiling.

Guy Crundwell from Connecticut told the BBC that politicians should be solvingthe country's problems rather than engaging in a "charade".

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"I am very fiscally conservative but for moral issues I lean towards the Democrats,but I'll be damned if I want to see either of them wasting my money on this sort ofposturing."

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U.S. government shuts down as Congresscan't agree on spending bill

Source:http://edition.cnn.com/2013/09/30/politics/shutdown-showdown/index.html

Washington (CNN) -- The U.S. government shut down at 12:01 a.m. ET Tuesday after lawmakers inthe House and the Senate could not agree on a spending bill to fund the government.

The two sides bickered and blamed each other for more than a week over Obamacare, the

president's signature health care law. House Republicans insisted the spending bill include anti-

Obamacare amendments. Senate Democrats were just as insistent that it didn't.

Federal employees who are considered essential will continue working. But employees deemed non-

essential -- close to 800,000 -- will be furloughed.

Most furloughed federal workers are supposed to be out of their offices within four hours of the start

of business Tuesday.

President Barack Obama issued a statement early Tuesday to military members and Department of

Defense employees about the outcome of the shutdown.

"Those of you in uniform will remain on your normal duty status," the president said. "Congress has

passed, and I am signing into law, legislation to make sure you get your paychecks on time. And

we'll continue working to address any impact this shutdown has on you and your families."

"To all our DOD civiliansI know the days ahead could mean more uncertainty, including possible

furloughs," the president added. "And I know this comes on top of the furloughs that many of you

already endured this summer. You and your families deserve better than the dysfunction we're

seeing in Congress. ... That's why I'll keep working to get Congress to reopen our government and

get you back to work as soon as possible."

The final hours

The shutdown appeared inevitable Monday night as House Republicans acknowledged they couldn't

overcome Senate objections to a proposal that includes provisions aimed at derailing Obamacare.They planned to have another vote overnight that would request a conference with the Senate to

work out their differences. But the move, which would not have averted a shutdown, was dismissed

by Senate Majority Leader Harry Reid.

"We will not go to conference with a gun to our head," Reid said.

Democratic Rep. Chris Van Hollen said the reason there wasn't a budget deal is because

Republicans refused to negotiate months ago.

"They want to go to conference with 45 minutes left," Van Hollen said late Monday night. "That is a

recipe for a government shutdown."

Legislative ping pong

For the second time Monday, the Senate rejected a House Republican effort to derail Obamacare by

linking it to a proposal that would avert the shutdown.The Senate voted to table House amendments that would have delayed the individual mandate in

the health care law and eliminated health insurance premium subsidies for members of Congress,

their staffs and the president.

In the latest volley of legislative ping pong over a short-term spending plan needed to avoid the

shutdown, House Republicans were expected to meet to discuss their next steps.

Earlier, Senate Democrats had rejected a House proposal by a 54-46 vote, strictly along party lines.

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Obama made a previously unscheduled statement to reporters on Monday afternoon, blasting the

attempts by House Republicans to undermine Obamacare that he said threaten to harm the

economy with a shutdown.

"You don't get to extract a ransom for doing your job, for doing what you're supposed to be doing

anyway, where just because there's a law there that you don't like," the president said.

Obama later called Boehner and other party leaders in the House and Senate, the White House said,but a Boehner spokesman indicated there was no breakthrough.

Moderate GOP revolt against Boehner?

GOP sources told CNN that moderate House Republicans were trying to galvanize what would

amount to a rebellion against Boehner and their tea party colleagues by defeating the latest

proposed spending plan with attached anti-Obamacare provisions.

However, a procedural vote on the measure passed with only six Republicans voting "no."

Without congressional approval of new spending legislation, parts of the federal government will

begin shutting down when the current fiscal year ends at midnight, forcing agencies to furlough

thousands of workers and curtail some services until there is a resolution.

"I feel sad about it. We expect more from our Congress," said Vick Temple, a worker for the Federal

Aviation Administration who said he faced being furloughed in a shutdown.Polls show public opposition to a shutdown, and stocks ended lower Monday on Wall Street due to

concerns over the economic impact.

The blame game

Photos: Key players in the shutdown debate

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Lawmakers back and forth on shutdown

Government shutdown looms

Political effect of a government shutdown

Republican Rep. Renee Ellmers of North Carolina said on CNN's "New Day" that her party continues

to be deeply concerned about Tuesday's scheduled opening of Obamacare health insurance

exchanges and "keeping the checkbook out of Barack Obama's hands and the damage can be done

there."

Get up to speed on the showdown

Rep. Debbie Wasserman Shultz, D-Florida, appearing alongside Ellmers, characterized the

Republican strategy of tying overall government operations to at least a delay in health care changes

as "irrational.""It jeopardizes the economy and it makes no sense," she said.

Weeks of hot potato

Last week, the Senate voted down a House GOP plan to eliminate funding for Obamacare in a

short-term spending plan to keep the government running in the new fiscal year that begins Tuesday.

Democrats have pressured Boehner to give up a losing fight over Obamacare forced by tea party

conservatives and instead hold a vote on a "clean" spending plan that includes no provisions

seeking to undermine the health care reforms.

Wasserman Schultz predicted that such a measure would pass easily with support from all

Democrats and more moderate Republicans.

Some Republicans expressed frustration Monday with the tactics of their congressional colleagues.

Veteran GOP Sen. John McCain of Arizona noted that any attempt to repeal Obamacare would failbecause of Obama's veto, which would require a two-thirds majority in the Senate to overcome.

"There's not 67 votes in the United States Senate, therefore, ergo, we're not going to repeal

Obamacare," McCain said. "OK? That's it. We may do this for a day. We may do it for a week. We

may do it for a month. It's going to end up the same way. "

GOP Rep. Charlie Dent of Pennsylvania told CNN Chief Congressional Correspondent Dana Bash

that whichever party was to blame, a shutdown will make everyone look bad.

10 ways the shutdown would affect you

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Obamacare still a GOP focus

Obama and Democrats reject what they call Republican efforts to use the threat of a government

shutdown to force negotiations on the president's signature health care reforms.

Noting that the 2010 Affordable Care Act has been upheld by the Supreme Court, they say it is

settled law that voters endorsed last year by re-electing Obama over GOP candidate Mitt Romney,

who campaigned on repealing it.A new CNN/ORC poll shows that Americans are not happy about the prospect of a shutdown, which

is happening because Congress has been unable to pass a budget for the new fiscal year that

begins Tuesday.

A game of chicken between Dems, GOP

According to the poll, 68% of Americans think shutting down the government for even a few days is

a bad idea, while 27% think it's a good idea.

And it appears most Americans would blame congressional Republicans for a shutdown: Sixty-nine

percent said they agreed with the statement that the party's elected officials were acting like "spoiled

children."

Democrats, however, weren't far behind: Fifty-eight percent of respondents said they too were acting

like spoiled kids.A poll later showed public support for Congress at record low levels.

Stock traders also seemed solidly against a shutdown. The Dow Jones Industrial Average fell by

more than 120 points, or nearly 1 percent, and the other two major indexes also closed lower.

Among major economic issues that could result from a shutdown: delays in processing FHA housing

loan applications -- a potential drag on the housing recovery -- and the potential loss of government

spending that's helping prop up the economy, said Christine Romans, host of CNN's "Your Money."

"You've got an economy right now that's very tied to government spending and government

contracts, so that could have a ripple effect all across Main Street," she said on CNN's "New Day."

If the government does shut down, it would be the first time it has happened in more than 17 years.

That previous shutdown, sparked by a budget battle between Democratic President Bill Clinton and

a Republican Congress, lasted for 21 days.

CNN Poll: GOP would bear the brunt of shutdown blame

While the military will remain on duty, as will many essential public safety, health and welfare

operations, many government offices will close. About a quarter of the federal government's 3.3

million employees -- those frequently referred to as "nonessential" -- will be told to stay home from

work until the shutdown is over.

Attorney General Eric Holder and Defense Secretary Chuck Hagel said essential crime prevention

and military services would continue, but some workers would be furloughed. Holder said he would

cut his pay by the same amount as the most severely affected Justice Department employees

because "we are all in this together."

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Federal government shuts down for the first timein 17 years as Congress continues to debateSource:http://news.yahoo.com/government-shutdown-imminent-barring-an-unlikely-last-minute-deal-165129660.html

The federal government officially shut down for the first time in 17 years at midnight on

Monday, after House Republicans refused to drop demands that parts of the Affordable

Care Act be delayed in return for approval of a mandatory government funding bill.

Federal employees who are considered essential to public safety will be expected to work

this week. But most federal offices will be closed until Congress reaches a deal. The

shutdown is the first one of its kind since 1996, when the government closed for 26 days

under President Bill Clinton.

Despite missing the deadline, debate persisted in the House and Senate early into the

morning. The House is still planning to request to establish a conference committee with the

Senate, but Senate Democratic leaders preemptively rejected the offer Monday night,

saying they would not negotiate until the House had passed a bill to fund the government

for six weeks without any extra provisions.

The Senate will likely respond by tabling the offer, which will take the federal government

into a partial shutdown scenario beginning Tuesday morning.

House Republican leaders intend to request a conference committee from Senate

Democrats to resolve differences on a bill to fund the government. But earlier Monday,

Senate Democrats announced they would reject a House request for a conference

committee to find a solution to budget woes.

"Republicans are still playing games," Senate Majority Leader Harry Reid, a Democrat of

Nevada said on the House floor.

Appointing a conference committee would not have averted a government shutdown before

the Monday night deadline when government funding levels expire, but it could have put the

battling parties in a position to reach an agreement to fund the government faster than the

game of legislative ping pong House Republicans played with Senate Democrats on the

final day before the shutdown deadline.

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Over the past week, the Senate rejected the third proposal from the House to keep the

government open while also attacking Obamacare most recently by delaying the

individual mandate to buy health insurance and by prohibiting congressional staff members

from federal insurance subsidies under the controversial health care program.

As time grew short, President Barack Obama signed last-minute legislation to ensure that

members of the military and personnel at the Department of Homeland Security get paid

even in the event of a shutdown. And aides scoffed at the conference request as a

desperate gambit ensuring that government will turn out the lights at midnight.

Obama,after stepping before cameras to urge an end to the standoff, reached out by

telephone to Republican House Speaker John Boehner, Democratic Senate Majority Leader

Harry Reid, Democratic House Minority Leader Nancy Pelosi and Republican Senate

Minority Leader Mitch McConnell but there was no breakthrough, a White House official

said.

As a result of Republicans refusing to hold a budget conference to set spending levels for

the year, Congress is funding the government with short-term, stop-gap "continuing

resolutions" that must be approved when old ones expire. The deadline for approving a new

one is midnight Monday.

Earlier this month,House Republicans passed their first version of a spending bill but added

a controversial amendment that would defund Obamacare. After a lengthy debate over thebill in the Democrat-controlled Senate,which included a 21-hour protest speech from TexasRepublican Sen. Ted Cruz, the upper chamberrejected the House billand returned itsversion with the Obamacare funding reinserted.

Senate Democratic leaders warned that they would accept nothing short of a clean

continuation of funding one without riders such as defunding Obamacare a move that

practically dared Republicans to blink.

House Republicans only dug in their heels deeper. Over the weekend,they approved

another bill, one that would delay Obamacare for a yearand permanently abolish a tax on

medical devices, and the Senate rejected it Monday.

Boehner, Republican of Ohio,chided Senate DemocratsMonday for waiting until the day

before a shutdown to act and reiterated the Houses intention to use the shutdown battle as

a vessel to cripple the health care law.

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"This law is not ready for prime time. The House has done its work, Boehner said on the

House floor. It's time for the Senate to listen to the American people just like the House has

listened to the American people and pass a one-year delay of Obamacare."

Obama, who has vowed to veto any spending bill that tampers with the Affordable CareAct, said Monday that he was not "resigned" to a shutdown.

I suspect I will be speaking to the leaders today, tomorrow and the next day," Obama said.

Before the House chose to attack Obamacare using the mandatory spending bill, HouseRepublicanshad planned instead to use an upcoming vote to raise the federalgovernments debt limit as the vehicle for delaying the law. However, with support from Cruzand his allies in the Senate, House conservatives demanded action immediately. Boehnerrelented, Democrats refused to budge and the federal government shut down.

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United States government shutdown begins as Congress hits deadend

http://www.smh.com.au/business/world-business/united-states-government-shutdown-begins-as-congress-hits-dead-end-20131001-2upwq.html#ixzz2gXQfMER6

The United States government began a partial shutdown at midnight (2pm today, AEST) for the first time in 17 years,

putting as many as 800,000 federal employees out of work, closing national parks and halting some government

services after Congress failed to break a partisan deadlock.

No further negotiations were immediately planned, raising concerns among some lawmakers that the shutdown could

bleed into a fight economists consider even more consequential: how to raise the nations debt limit to avoid a first-

ever default after October 17.

You dont get to extract a ransom for doing your job, for doing what youre supposed to be doing anyway or just because

theres a law there you dont like": US President Barack Obama.Photo: AP

A partial federal government shutdown could cost the US at least $US300 million ($320 million) a day in lost

economic output at the start, according to IHS Inc. Thats a fraction of the countrys $US15.7 trillion economy, and the

impact is likely to grow over time as skittish consumers and businesses stay on the sidelines.

Advertisement

US President Barack Obama has reassured US troops they will still get paid on time, despite a government shutdown.

Obama earlier signed emergency legislation ensuring that wages will continue for service members.

He says ongoing operations in Afghanistan and elsewhere will continue and the US will ensure those in harms way

have what they need.

The threats to our national security have not changed, and we need you to be ready for any contingency, Obama

said.

The president warned however that many non essential civilian contractors, unlike their colleagues in uniform, wont

be paid.

Chances of a last-minute deal - seen so often in past fiscal fights - evaporated shortly before midnight as the House

stood firm on its call to delay major parts of President Barack Obamas health -care law for a year. Senate Democrats

were equally firm in refusing.

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As the US government sped toward shutdown, lawmakers lobbed dead-end proposals across the Capitol and began

blaming each other for failing to come up with a way to fund the government.

The House voted 228-201 to pass its third version of a short-term extension of government funding in the past 10

days. Each attempt linked averting a shutdown to major changes to the 2010 Affordable Care Act, and each drew

veto threats from US President Barack Obama.

About an hour later, the Senate rejected that plan on a 54-46 vote, putting pressure on House Speaker John Boehner,

R-Ohio, and the Republicans.

Theyve lost their minds, said Senate Majority Leader Harry Reid, a Nevada Democrat. They keep trying to do the

same thing over and over again.

The House sought a conference committee with the Senate, said a Republican leadership aide on condition of

anonymity.

Republicans said Democrats were unwilling to negotiate and Democrats said the House was trying to extort policy

changes on a plan that would, at most, keep government open through December 15.

Hours after talking by phone with President Obama, Boehner urged the House to pass its latest plan. It delays by a

year the mandate that uninsured individuals buy health coverage and prevents the government from making

contributions to the health care of lawmakers, their staffs and political appointees.

This is not about me, the Ohio Republican said on the House floor. And its not about Republicans here in

Congress. Its about fairness for the American people.

Even as Republicans such as Representative Peter King of New York complained about the partys strategy, they

were relatively united. On the latest proposal, 12 Republicans voted no; nine Democrats voted for the plan.

Obama called Boehner and they spoke for almost 10 minutes, Brendan Buck, a spokesman for the speaker, said in a

statement. Obama also spoke to the other top three leaders in Congress, the White House said in a statement. There

were few signs of progress toward an agreement.

You dont get to extract a ransom for doing your job, for doing what youre supposed to be doing anyway or just

because theres a law there you dont like, Obama said at the White House on Monday. Times running out.

The Senate voted 54-46, along party lines, earlier on Monday to reject the Houses previous plan, in a move that put

pressure on House Republicans, who are insisting on tying changes in the 2010 Affordable Care Act, now known as

Obamacare, to a short- term extension of government funding after tonight.

Senate Republicans floated the idea to extend by one week the funding deadline to avert a shutdown. Reid said no.

Democrats urged Boehner to allow a vote on a spending bill without conditions.

Thats not going to happen, Boehner said.

Australians seeking a visa to work in the US wont be affected by the American government shutdown, a consular

official says.

The US Consulate in Sydney, which processes visa applications for Australians wishing to work in the US,

announced that a shutdown would not affect consular services, which also operate in Melbourne and Perth.

For the time being, essential services are going to continue and consular services are certainly considered

essential, consulate spokesman Dave McGuire said.

It obviously varies from country to country but here in Australia, we would continue with our staffing as it is.

Bloomberg, Washington Post, AAP, AP

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Architect of the brink: Meet the manbehind the government shutdown

Source:http://edition.cnn.com/2013/09/27/politics/house-tea-party/index.html

Washington (CNN) -- One of the most prominent developers of the plan that could shut thegovernment down is a little-known congressman who has been in office only eight months.

This newly elected tea party aligned lawmaker downplays his position, saying he has relatively little

influence. But in reality, his efforts have pushed Washington to the brink.

At issue is the Affordable Care Act, also known as Obamacare. Some Republicans are demanding

that it be dismantled -- or at the very least delayed - and they think the best way to do that is attach it

to a must-pass bill to fund the government.

The idea has rankled Washington for more than a week and exposed fissures in the Republican

Party.

So who is the lawmaker quietly influencing the debate?

Sen. Ted Cruz, who staged a 21-hour talk-a-thon on the Senate floor disparaging Obamacare, would

be a good guess. But it would be wrong.

The persuasive

The answer? Mark Meadows, who represents the western part of North Carolina and has wielded

his influence behind the bright lights of the television cameras and the hot microphones.

In August, while lawmakers spent time in their districts, Meadows wrote a letter to his Republican

leaders suggesting they tie the dismantling of Obamacare to the bill that funds the government for

the next year.

The man behind the government shutdown

A goverrnment shutdown looks like this

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Photos: Key players in the shutdown debate

The letter read: "James Madison wrote in Federalist No. 58 that 'the power over the purse may, in

fact, be regarded as the most complete and effectual weapon... for obtaining a redress of every

grievance...'"

Meadows successfully convinced 79 of his colleagues to sign on to his letter. And he went further,

leading a group of 40 lawmakers to demand that the continuing resolution, or the short-term

government funding bill at issue, zeroes out funding for President Barack Obama's signature

domestic policy achievement so far.

Republican divisions force delay in Boehner's debt strategy

In a lengthy interview with CNN, Meadows explained his case.

"Our intent has never been to shut down the government," Meadows said. "It's to stop the [health

care] law."

Senate Majority Leader Harry Reid called those advocating for such a plan "anarchists."

A "bad day for government is a good day for the tea party," Reid said on the Senate floor last week.

Meadows vs. the GOP

Republican leaders in the House were reluctant and dismissed the plan -- at first. Speaker John

Boehner and many Republicans believed the strategy could lead to shutdown as the Democratic-led

Senate would never agree to such a plan.

Additionally, leaders believed that Republicans would be blamed for a shut down. Polling backs uptheir concern. A recentCNN/ORC International Pollindicated that 51% of respondents would blame

Republicans. That's a political risk that leadership didn't want to risk.

Even though Meadows' letter doesn't represent a majority of the caucus, itwas a factorin persuading

Boehner to reverse course and put forward a plan that funds the government but defunds

Obamacare.

Running against politics

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Meadows said he understands that "leadership has a different responsibility." And that leadership is

responsible for thinking about the party. "This type of vote could potentially hurt our long term goals.

I understand that," he said.

But he said that's not his concern.

"My job first is to make sure I represent the people back home," Meadows said. "I don't believe that

when I get here that people expect me to look at the political implications. That's for somebody elseto focus on."

For him, getting rid of Obamacare is priority No. 1. "[T]o ignore that would be to ignore our duty to

represent the people back home," he said.

'Persona non grata'

"For me it's about representing the 749,000 people I was elected to represent," Meadows told CNN

in his small Capitol Hill office. He said his constituents want him to fight against Obamacare

"regardless of consequences."

Meadows represents a conservative constituency. He was elected in 2012 and succeeded Democrat

Heath Shuler, who decided not to run for reelection after the latest round of redistricting made the

district swing heavily Republican.

Meadows won by 15 percentage points. Republican presidential candidate Mitt Romney won thedistrict with 61% of the vote, an impressive outcome in a state he won by 1 point.

Exclusive: Romney disagrees with House GOP 'tactics' on Obamacare

But there's more to the story. Meadows works very closely with the tea party groups and he is a

conduit to their agenda.

In fact, his catapult from local businessman to elected official was launched with the help of local tea

party groups. He underwent a vigorous interview process with the North Carolina-aligned tea party

groups that included an intense vetting and interviewing process.

Jane Bilello, head of the Asheville, North Carolina, tea party group and its separate political action

committee, said it is to ensure candidates "truly represents who we are and what we want them to

do."

Bilello is pleased with Meadows' job performance so far. She said Meadows is "turning out to be our

poster boy."

On the issue of Obamacare, "he truly represents us," Bilello said.

Well-funded national tea party-aligned organizations, such Freedom Works, are also watching

closely.

Like Bilello's organization, they hold lawmakers accountable. Not only do they keep scorecards of

how lawmakers vote on legislation, they are keeping track of what letters they sign on to and their

role in every step of the legislative process.

Republican leaders are well aware of the influence of these organizations.

Republican Rep. Lee Terry of Nebraska, who was elected in 1998 and finds himself between the

new generation of tea party-aligned groups and the more traditional Republican leadership, said thetea party groups "impacts everybody."

Billelo said that Meadows hosts conference calls with the groups' members to explain what's

happening in Congress, including the challenges that he faces promoting their agenda.

She said he told them he's "persona non grata" around the halls of Congress. Bilello said she and

her members remind him: "They don't elect you. We do." They also offer assurance: "We have your

back. We will support you," Bilello said she tells him.

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Meadows relayed a similar sentiment. "There's nobody in Washington, D.C., who ever voted for me

and there's no one in Washington, D.C., who will ever vote for me," Meadows said. "So it's about

representing the people back home."

The non-leadership leader

"I think everybody wants me to pick a fight with leadership," Meadows said. But he contended that

he isn't about playing the rebel, but finding results.Are his tactics working? Meadows said yes.

"The Senate for the first time is having to vote ... on Obamacare," Meadows said. "That's why we

had to do this."

The House has now voted 42 times on either defunding or repealing all or parts of Obamacare.

Many Republicans in the Senate thought the idea was a lost cause, including Texas Republican

John Cornyn, who said Friday that the strategy "won't work."

TheSenate eliminated the health care portion of the billon Friday before sending a revised spending

plan back to the House for consideration over the weekend. A shutdown would occur Tuesday, if

there is no spending plan in place.

But Meadows successfully convinced a reluctant Boehner to go along with his plan. And then after it

became clear the Senate wasn't going to play ball, the speaker hoped to move past the fight andpass a funding bill that would be able to pass the Senate, meaning it wouldn't defund health care.

But Boehner's Republican caucus, once again with Meadows in the forefront, rejected that plan.

Boehner's now working on a plan that will appease members such as Meadows.

What do shutdown and debt limit have to do with Obamacare?

Meanwhile, Meadows vowed to hold his ground.

"If there is a real plan to make sure we can accomplish it through some other means, I'm willing to

look at that," he said. But he said it must involve "at least delaying" the implementation of

Obamacare.

If it doesn't, he is willing to buck his leadership and oppose any bill he doesn't think goes far enough.

He admits some will have to take "some tough votes" to take. But for him he's right where his

constituents want him to be.

"It's a safe place for me to be," Meadows said.

Polarizing Washington

Meadows rejected the idea that he is adding to the gridlock in Washington. He said Washington

politicians have lost their way, but it's not because of their inability to compromise.

"Pragmatism has been at the cost of principle and principle has been at the cost of pragmatism," he

said.

Still, Meadows asserted that he is willing to compromise with the Democrats.

"My ultimate success will be viewed by whether there is something we can accomplish," he said.

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Markets Rise Even as U.S. Government Shutdown Starts

Read more:http://business.time.com/2013/10/01/markets-shrug-off-partial-u-s-government-shutdown/#ixzz2gXTBVMSu

(NEW YORK) Investors stayed calm on the first day of a partial shutdown of the U.S.government Tuesday and sent the stock market modestly higher.

A long-running dispute in Washington over President Barack Obamas health care lawcaused a deadlock over the U.S. budget, forcing about 800,000 federal workers off the

job and suspending all but essential services. With the Republican-controlled House ofRepresentatives and Democratic-controlled Senate locked in a stalemate, it was unclearhow long a temporary bill needed to finance government activities would be stalled.

Despite the political rancor, investors didnt push the panic button. That suggests that,

at least for now, they arent anticipating that the stalemate will cause enough disruptionin the economy to threaten a gradual U.S. recovery and a four-year bull run in the stockmarket.

The trend of the economy appears to be in a positive direction, said Michael Sheldon,chief market strategist at RDM Financial Group. Unless this really gets ugly, we thinkthe markets should start to look ahead to what we believe should be better economicdata over the next six to 12 months.

In the latest encouraging news on the economy, a private industry group reportedTuesday that U.S. manufacturing expanded at the fastest pace since April 2011 last

month on stronger production and hiring.The Dow Jones industrial average rose 62.03 points, or 0.4 percent, to 15,191.70. TheStandard & Poors 500 index gained 13.45 points, or 0.8 percent, to 1,695.00. TheNasdaq composite rose 46.50 points, or 1.2 percent, to 3,817.98.

All ten sectors of the S&P 500 rose, led by gains in health care and technology.

Merck helped lift the health care sector. The drugmakers stock rose $1.13, or 2.4percent, to $48.74 after it announced plans to cut another 8,500 jobs as part of a plan toreduce its annual costs by about $2.5 billion by the end of 2015.

The technology sector was given a boost by Apple, which gained $11.21, or 2.4 percent,to $487.90, after billionaire investor Carl Icahn tweeted about his dinner meeting with

Apples CEO Tim Cook. Icahn, who said he has invested $2 billion in Apple, is pushingfor the company to spend $150 billion buying its own stock.

I feel very strongly that this should be done, Icahn told CNBC in an interview. Its ano-brainer.

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The Apple board pledged in April to spend $60 billion buying back its stock through theend of 2015. About $18 billion of that commitment had been exhausted through June.

The S&P 500 index has fallen 2 percent since climbing to a record on Sept. 18, whenthe Federal Reserve surprised investors by saying it would continue with its economic

stimulus. The index has fallen seven out of eight days leading up to the partialgovernment shutdown.

Were not jumping in with both feet but were selectively putting money to work, saidJoseph Quinlan, chief market strategist for U.S. Trust Bank of America Private WealthManagement. On the other side of the government shutdown, youve got continuedsupport from the Fed and a global economy thats rebounding.

Many investors still predict that the budget fight will be resolved before it spills over intoa dispute about raising the nations borrowing limit. Treasury Secretary Jack Lew saidlast week that the government would run out of borrowing authority by roughly Oct. 17.

The last time the borrowing limit, or debt ceiling, issue came up in August 2011, it led toa downgrade of the United States credit rating by Standard & Poors. The Dow wentthrough nearly three weeks of triple-digits moves almost daily shortly thereafter.

To some extent investors are conditioned to a certain amount of drama and if we canget the drama behind us quickly it wont be a big deal, said Dean Junkans, ChiefInvestment Officer for Wells Fargo Private Bank. If this goes beyond the middle of nextweek, the market will get increasingly more worried about the debt ceiling.

In other stock trading, the Russell 2000, an index of small-company stocks, rose to arecord level, a sign that investors are still willing to buy riskier assets despite the

government slowdown.

The Russell rose 13.64 points, or 1.3 percent, to 1,087.43.

In government bond trading, the yield on the 10-year note rose to 2.65 percent from2.61 percent late Monday.

The price of oil fell 29 cents, or 0.3 percent, to $102.04 a barrel. Gold fell $40.90, or 3percent, to settle at $1,286.10 an ounce.

The dollar fell against the euro and the Japanese yen.

Among other stocks making big moves:

Walgreen rose $2.44, or 4.5 percent, to $56.24 after the drugstore chain said itsfiscal fourth-quarter earnings soared 86 percent after it booked gains from its method ofinventory accounting and its acquisition of a stake in European health and beautyretailer Alliance Boots.

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Ford gained 32 cents, or 1.9 percent, to $17.19 after the automaker said that U.S.sales rose 6 percent in September, with strong car sales making up for slower sales ofSUVs.

Read more:http://business.time.com/2013/10/01/markets-shrug-off-partial-u-s-government-shutdown/#ixzz2gXTNDIif

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Impact of government shutdown felt acrossthe U.S.Source:http://news.msn.com/us/impact-of-government-shutdown-felt-across-the-us?stay=1

After the deadline to avert the shutdown was passed, thousands of federalworkers were left idled and most non-essential government services werehalted.

NEW YORKThe partial government shutdown that began Tuesday threw intoturmoil the household finances of some federal workers, with many facing unpaidfurloughs or delays in paychecks.

EPA Worker: Furloughs hit employees hard

9 hr ago 0:47 Views: 0 Park ranger and father-to-be Darquez Smith said he already lives paycheck to

paycheck while putting himself through college and worried how he'll fare if thechecks stop coming.

"I've got a lot on my plate right nowtuition, my daughter, bills," said Smith, 23,a ranger at Dayton Aviation Heritage National Historical Park in Ohio. "I'm justconfused and waiting just like everyone else."

Images:What a government shutdown looks like

Images:What a government shutdown means for youRobert Turner, 45, a building mechanic at the Smithsonian's American History

museum in Washington, said he and co-workers were heading in for several hoursto turn off the water and take out the trash. Then, he planned to go to Ocean City,Md., and return when he's called back.

"After next week if we're not working I'm going to have to find a job," Turner said,explaining he doesn't want to have to eat into savings.

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A Monday deadline to avert the shutdown passed amid a budget impasse in

Congress, leaving thousands of federal workers idled and most non-essentialgovernment services halted for the first time in nearly two decades. Millions of

Americans were unable to get government services ranging from federally backedhome loans to supplemental food assistance for children and pregnant women.

Related:A look at government shutdowns through historyThe impact of the shutdown was mixedimmediate and far-reaching for some,annoying but minimal for others.

In Colorado, where flooding killed eight people earlier this month, emergency

funds to help rebuild homes and businesses continued to flowbut federalworker furloughs were expected to slow it down.

Vets cross barricades despite shutdown

9 hr ago 1:15 Views: 0

National Guard soldiers rebuilding washed-out roads would apparently be paid ontimealong with the rest of the country's active-duty personnelunder a billpassed hours before the shutdown. Existing Social Security and Medicare benefits,veterans' services and mail delivery were also unaffected.

Other agencies were harder hitnearly 3,000 Federal Aviation Administrationsafety inspectors were furloughed along with most of the National Transportation

Safety Board's employees, including accident investigators who respond to aircrashes, train collisions, pipeline explosions and other accidents.

Almost all of NASA shut down, except for Mission Control in Houston, andnational parks closed along with the Smithsonian museums and the National Zoo.

Even the zoo's popular panda cam went dark, shut off for the first time since a cubwas born there Aug. 23.

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Federal workers would not see their pay affected right away. If a shutdown

continues, all employees can expect to be paid on schedule on Oct. 15, 2013, forhours worked from Sept. 22 through Sept. 30.

Still, Marc Cevasco, who works in the Department of Veterans Affairs, said as he

waited for a bus Tuesday that the uncertainty of how long the shutdown would lastis making some people uneasy.

"Even if it's just shut down for a week that's a quarter of your pay this month. That

means a lot to a lot of people," he said.

Cevasco, 30, said he had been told his office had enough money to pay workers for

Tuesday, so he was keeping his appointments. But he could have to turn in hisphone later in the day and go home until the government reopens.

Visitors to popular parks made their frustration with elected officials clear.

"There has to be better ways to run the government than to get to a standstill likethis," said Cheryl Strahl, 67, of Atascadero, Calif., who attempted to visit the

Statue of Liberty but was instead offered a 60-minute ferry cruise around NewYork Harbor.

"Why take it out on the national parks?" she said. "There are other places they cantake it out on."

"It's frustrating," agreed Editha Heberlein, 56, of Springfield, Va. "HopefullyCongress can get their act together just for the sake of everybody."

In Washington, visitors to the National Mall found locked doors, black metal

barricades and yellow caution tape blocking entrances to tourist attractions justhours after the shutdown. Fountains at the World War II Memorial were shut off.

"Why the heck does this have to be closed?" said Deb Cavender, 44, of Ames,Iowa, as she and her husband were making their way toward the memorial.

It turns out an institution as massive as the federal government takes some time to

grind to a total halt: Many federal workers were being permitted to come inTuesday to change voicemail messages or fill out time cards. But after that, theywere under strict orders to do no work, even check their email.

With no telling how long the standoff will last, even programs not immediatelyaffected could run out of cash.

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Barbara Haxton, executive director of the Ohio Head Start Association, said its

preschool learning programs would be in jeopardy if a shutdown lasted more thantwo weeks. Automatic budget cuts in March meant nearly 3,000 children lost

access to services and there could be dire consequences if the budget standoffdrags on, she said.

"It's not as though this is a throwaway service. These are the poorest of the poorchildren," Haxton said. "And our congressman still gets his paycheck. His paydoesn't stop and his health insurance doesn't stop."

Associated Press writers Joe Frederick in New York, Jessica Gresko, Brett

Zongker and Joan Lowy in Washington, and Amanda Lee Myers in Cincinnaticontributed to this report.

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U.S. government shutdown by thenumbersSource:http://www.cbc.ca/news/world/u-s-government-shutdown-by-the-numbers-1.1874521

400 nationally maintained sites among the services affected by impasse

The partial government shutdown in the U.S. has forced federal workers off the job and caused the

suspension of all but essential government services. Here's a look at the standoff and its effects, by

the numbers.

800,000 federal workers: Most nonessential federal programs and services are being suspended,

meaning about 800,000 workers including 400,000 Defence Department civilians have been

temporarily forced off the job. Employees will receive an official email Tuesday explaining whether or

not they are essential or slated to be furloughed.

17 government services: It's difficult to enumerate the many ways the shutdown will affect

Americans, but the official U.S. government website specifically mentions 17 services that will be or

could be affected. For example, there will be no new home loan guarantees, no new patients at the

National Institutes of Health, and no new passport applications during the shutdown. Many

attractions are closed including the National Zoo and presidential libraries. Services the government

says will be unaffected include air traffic control, military, prisons, border security, mail delivery,

anything related to national security and public safety, social security cheques and emergency

medical care.

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A park ranger reads a sign announcing the closing of the Statue of Liberty as part of the partial

government shutdown. All non-essential services are closed. (Mark Lennihan/Associated Press)

401 National Park Service sites shut down: These areas include the country's 59 national parks,

as well as monuments, battlefields, smaller parks, historic sites, lakeshores, seashores, recreation

areas and scenic rivers and trails.

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1 panda cam: The beloved panda cam at Washington's National Zoo has gone dark because of the

government shutdown. MotherMei Xiang and her weeks-old cub had been a popular draw, but the

camera was deemed non-essential and shut off at 8 a.m. Tuesday.

17 years: It's been that long since the last U.S. government shutdown. A pair of shutdowns in late

1995 and early 1996 happened during a standoff led by Republican Speaker Newt Gingrich andthen-president Bill Clinton. It severely damaged Republican election prospects and revived Clinton's

political standing.

$1.4 billion: The cost to taxpayers of those mid-'90s shutdowns, according to the U.S. Office of

Management and Budget.

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U.S. shutdown: Obama says Republicans on 'ideological crusade'

1st partial government shutdown in 17 years forces 800,000 federalworkers off the job

Source:http://www.cbc.ca/news/world/u-s-shutdown-obama-says-republicans-on-ideological-crusade-1.1874247

U.S. President Barack Obama said on the first day of a partial federal government shutdown that

House Republicans are on an "ideological crusade" against his health-care law, and called on them

to stop holding the economy hostage.

Obama, in a speech Tuesday afternoon in the White House Rose Garden, urged Republicans to

reopen the government quickly and allow furloughed federal employees to return to work.

Neil Macdonald: The perverse math behind the Republican budget showdown

Government shutdown: Could it happen in Canada?

Key Obamacare law kicks in amid confusion and shutdown

"They've shut down the government over an ideological crusade to deny affordable health care to

millions of Americans," Obama said, surrounded by people he said were relying on the new health

law.

By forcing the close of much of the government, Obama concluded, an out-of-control faction of

House Republicans is putting the nation's fragile recovery at risk of an "economic shutdown."

The partial government shutdown is the latest twist in a long-running dispute over Obama's health-

care law, over which a temporary funding bill has been stalled, forcing about 800,000 federal

workers off the job and suspending most non-essential programs and services.

Shortly after Obama's speech, House Republicans moved to pass a series of targeted bills aimed at

providing just enough funding to reopen programs for veterans, shuttered federal parks and to

restore funds for the District of Columbia. The proposal was rejected by the White House.

The proposal shows the "utter lack of seriousness" from Republicans, White House press secretary

Jay Carney said.

"If they want to open the government, they should open the government, and then we can negotiate

about how we fund our budget priorities in the future," Carney told reporters.

In a letter emailed to federal employees Tuesday morning, Obama said the partial shutdown of

government-funded services was "completely preventable."

The shutdown, the first since the winter of 1995-96, closed national parks, museums along the

Washington Mall and the U.S. Capitol visitors centre, along with monuments like the National WWII

Memorial which was reportedly stormed and occupied by Second World War veterans who

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travelled from Mississippi to visit the monument and the Statue ofLiberty.Agencies like NASA and

the Environmental Protection Agency will be all but shuttered.

People classified as essential government employees such as air traffic controllers, Border Patrol

agents and most food inspectors will continue to work.

The health care law itself was unaffected as enrolment opened Tuesday for millions of people

shopping for medical insurance.

Unexpectedly high internet traffic volumes to HealthCare.gov the website serving as the gateway

to the new online health insurance marketplace has registered over one million visits, according to

the U.S. Department of Health and Human Services. The higher than normal volume led to delays,

an official said.

Unclear how long standoff will last

The military will be paid under legislation freshly signed by Obama, but paychecks for other federal

workers will be withheld until the impasse is broken. Federal workers were told to report to their jobs

for a half-day but to perform only shutdown tasks like changing email greetings and closing down

agencies' internet sites.

U.S. government shutdown: What to expect

PHOTOS | U.S. government shutdown: Whats closed

Markets fall in reaction to U.S. budget showdown

The self-funded Postal Service will continue to operate and the government will continue to pay

Social Security benefits and Medicare and Medicaid fees to doctors on time.

The Senate twice on Monday rejected House-passed bills that, first, conditioned keeping the

government open to delaying key portions of the 2010 "Obamacare" law that take effect Tuesday,

and then delayed for a year the law's requirement that millions of people buy medical insurance. The

House passed the last version again early Tuesday; Senate Majority Leader Harry Reid said the

same fate awaits it when the Senate reconvenes Tuesday morning.

"You don't get to extract a ransom for doing your job, for doing what you're supposed to be doing

anyway, or just because there's a law there that you don't like," Obama said Monday, delivering a

similar message in private phone calls later to Republican House Speaker John Boehner and other

lawmakers.

Boehner said he didn't want a government shutdown, but added the health care law "is having a

devastating impact ... Something has to be done."

It wasn't clear how long the standoff would last, but it appeared that Obama and Reid had the upper

hand.

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The U.S. Capitol as seen through a chain fence in Washington. U.S. President Barack Obama said

on the first day of a partial federal government shutdown that House Republicans are on an

"ideological crusade" against his health-care law, and called on them to stop holding the economy

hostage. (Kevin Lamarque/Reuters)

"We can't win," said Senator John McCain of Arizona, adding that "sooner or later" the House would

have to agree to Democrats' demands for a simple, straightforward funding bill reopening the

government.

Last shutdowns happened 17 years ago

The order directing federal agencies to "execute plans for an orderly shutdown due to the absence of

appropriations" was issued by White House Budget director Sylvia Burwell shortly before midnight

Monday.

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Around the same time, Obama appeared in a video message assuring members of the military they'll

be paid under a law he just signed and telling civilian Defence Department employees that "you and

your families deserve better than the dysfunction we're seeing in Congress."

U.S. debt showdown: 7 questions answered

See the U.S. debt limit's steady uphill climb

The underlying spending bill would fund the government through Nov. 15 if the Senate gets its way

or until Dec. 15 if the House does.

Until now, such bills have been routinely passed with bipartisan support, ever since a pair of

shutdowns 17 years ago engineered by then-speaker Newt Gingrich severely damaged Republican

election prospects and revived then-president Bill Clinton's political standing.

Boehner had sought to avoid the shutdown and engineer passage of a "clean" temporary spending

bill for averting a government shutdown.

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U.S. Park Service workers fence off the closed Lincoln Monument in Washington, D.C, on Oct. 1, as

the first U.S. Federal government shutdown since 1995 begins. The Lincoln Memorial and many

other non-essential government run institutions are on a shut-down list. (Paul J. Richards/AFP/Getty)

This time tea party activists mobilized by freshman Senator Ted Cruz of Texas mounted a campaign

to seize the must-do measure in an effort to derail Obamacare. Republican leaders voiced

reservations and many Republican lawmakers predicted it wouldn't work. Some even labelled it

"stupid."

But the success of Cruz and other tea party-endorsed conservatives who upset establishment

Republican candidates in 2010 and 2012 primaries was a lesson learned for many Republican

lawmakers going into next year's election.