Government Shutdown Watch -- CRFB to Update Throughout the Day

Update 04-09-11 10:15 am: The shutdown has been averted. Details here.

Update 6:51 pm: Conflicting reports on whether deal close on Planned Parenthood rider. Check out @BudgetHawks on Twitter for more updates tonight.

Update: 5:55 pm: Sen. Harry Reid orginally scheduled to speak on Senate floor at 6 pm. Now will happen at 8 pm at earliest.

Update 5:10 pm: Many Republicans saying it is time to move on to bigger battles. Sign of a deal?

Update: 1:25 pm: Speaker Boehner emerged from the meeting with his caucus to say that "almost all" policy issues have been resolved. But still no deal. He is hopeful an agreement can be reached before midnight. Majority Leader Reid meeting with his caucus now. Both Reid and Boehner say they will forgo their pay if a shutdown occurs.

Update 12:21 pm: Senate Minority Leader Mitch McConnell (R-KY) said he believes there will be an "agreement here shortly." Speaker Boehner meeting with House GOP conference now. Senate Democratic conference meeting at 1 pm.

The federal government is headed for a shutdown at midnight tonight unless agreement is reached on either federal spending for the rest of the fiscal year or a stopgap measure to keep government operating temporarily. Budget negotiations involving House Speaker John Boehner (R-OH), Senate Majority Leader Harry Reid (D-NV) and the White House continue.

Negotiators are reportedly close to an agreement on cutting spending about $38 billion below 2010 spending levels. Yet, disputes over funding for Planned Parenthoood and certain Environmental Protection Agency activities remain a sticking point.

The budget talks are ongoing. Speaker Boehner is set to address the House GOP Conference at noon today. The reaction of his colleagues to the latest developments will significantly influence the ability to work out a deal in time.

A federal government shutdown is in no one's interest. Not only will a shutdown adversely affect the budget (as the Office of Management and Budget pointed out yesterday, shutting down and then ramping government operations back up costs money), it will also affect the economy and market confidence in our ability to deal with our fiscal challenges. 

We will be updating throughout the day on the situation. Follow us on Twitter (@BudgetHawks) to get immediate updates.