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FAA furloughs 4,000 employees as Congress fails to provide funding

Air traffic control systems will remain in operation, but many employees can't go to work, including almost 1,000 in Washington.

House GOP considers short-term debt-limit extension

White House has said it could accept a debt-limit extension of a few days if a larger agreement were already in the works.

Fed, Wall Street prepare for default

Preparations are being made despite 'gut feeling' a deal will be struck, Fed official says.

Foreign affairs group urges State to go after more staff

Department must be aggressive in seeking funding for additional positions, despite budget constraints, report says.

Cuts should target Defense before food stamps, Obama tells NPR

The president says proposed changes to Medicare are “modest” and intended to “retain the integrity of the program” for years to come.

Senate to vote Friday on cut, cap and balance' bill

Talks between House Republicans and the White House on a larger deficit reduction package are also continuing.

House Republicans, White House discussing $3 trillion budget deal

Lack of immediate tax revenue could be a nonstarter for many Democrats.

Homeland Security relying more on fixed-price contracts, report says

Small businesses winning a healthy proportion as the department’s awards shift from disaster response to IT and defense, think tank data show.

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Watchdog says U.S. aid money in Afghanistan may be fueling insurgency

SIGAR audit paints a dispiriting picture of a massive U.S. aid effort that's effectiveness has been seriously impaired.