WASHINGTON - President Barack Obama is facing the prospect of a fiscal fight with Congress, with both sides having three weeks to break funding impasses or risk government default.
Two crucial votes are on the horizon for the divided and gridlocked Congress, including approval of a federal budget for fiscal year 2014, which begins October 1.
Complicating matters, conservative Republicans are itching to use the upcoming showdown about raising the government's $16.7 trillion (S$21.3 trillion) debt limit as a way to defund Obama's national health care law.
Lawmakers are on recess until September 9, at which point they will have just nine legislative days to hammer out an agreement on federal spending.
Republicans are calling for greater budget austerity and their leader in the House, Speaker John Boehner, has urged his caucus to hold firm on its demands as they enter negotiations with Obama's Democrats.
Should the two sides fail to strike a deal, parts of the government will be forced into shutdown, triggering a fiscal domino effect that could send markets reeling.
A more contentious battle looms. With the government projected to hit its borrowing limit by mid-October, the two sides must reach agreement on raising that cap or risk a potentially calamitous default.
Lawmakers have long used the debt ceiling as leverage in budget negotiations. But Boehner, at a fund-raiser Monday in Idaho, raised the specter of a bitter battle in the weeks ahead, repeating his aim not to raise the borrowing limit unless his party gets an equal amount in spending cuts.
"It may be unfair, but what I'm trying to do here is to leverage the political process to produce more change than what it would produce if left to its own devices," Boehner said.
"We're going to have a whale of a fight."
The two sides are far from agreement, but Obama has insisted he will not negotiate over the US responsibility to pay its bills.
Should they fail to reach a deal, the crisis could ding the country's gold-plated credit rating, which suffered a hit in 2011 when Republicans and Obama brought their disastrous fiscal negotiations to the brink before coming to terms.