The U.S. Government has begun a partial shutdown for the first time in 17 years after the Republican-led House of Representatives refused to approve a budget for next year.
A midnight deadline over the president's health care law passed without agreement despite a last-gasp appeal by President Barack Obama.
More than 700,000 US government workers face unpaid leave with no guarantee of back pay once the deadlock is over.
According to the BBC, Republicans have insisted on delaying Obama's health care reforms as a condition for passing the budget.
One of the first casualties of the shutdown was the Twitter account for the US Capitol.
The US stock market dropped amid fears of political deadlock, although analysts say serious damage to the economy is unlikely unless the shutdown lasts for more than a few days, the report said.
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Under the shutdown, national parks and Washington's Smithsonian museums will close, pension and veterans' benefit cheques will be delayed and visa and passport applications will go unprocessed.
Programmes deemed essential, such as air traffic control and food inspections, will continue.
Department of education will still distribute 22 billion dollars to public schools, but staffing is expected to be severely hit
According to the report, the defence department has advised employees that uniformed members of the military will continue on normal duty, but that large numbers of civilian workers will be told to stay home.