House Speaker John Boehner said talks with the White House were drifting further apart US President Barack Obama is holding further talks with congressional leaders to discuss a deal on the federal budget as the deadline for a government shutdown looms.
The Democrats have accepted cuts of more than $33bn (£20bn) but some Republicans want cuts of more than $60bn to tackle the US's huge deficit. Top Senate Democrat Harry Reid said the key issue was "ideology, not numbers".
Without a deal parts of the government will shut down at midnight on Friday.
Mr Obama and Vice President Joe Biden began talks with House Speaker John Boehner and Mr Reid at the White House at 1300 local time (1700GMT).
The group were to "discuss ongoing negotiations on a funding bill to bring us through the end of the fiscal year," the White House said in a statement.
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