The dangerous budget brinksmanship, just hours before a deadline that could bring catastrophe. New talks picked up in the senate again late last night. And abc's jon karl is here with all of the... See More
The dangerous budget brinksmanship, just hours before a deadline that could bring catastrophe. New talks picked up in the senate again late last night. And abc's jon karl is here with all of the latest. Good morning, jon. Reporter: Good morning, george. With zero hour almost here, democratic and republican leaders in the senate, are pushing, at long last, a bipartisan plan to end the shutdown and prevent default. The question now, is the damage already done? In an interview tuesday with wabc, president obama predicted senate leaders could, at long last, put an end to the impasse. What we've seen amongst senate democrats and republicans is a recognition that there are ways for us to do this that doesn't damage the economy. Reporter: Speaker of the house john boehner made a last-ditch effort to find a solution. But the move went up in flames. Opposed by tea party republicans before the vote was even called. Make no mistake, the bill the republicans are putting on the floor today is a decision to default. Reporter: The house failure put is spotlight back on democratic and republican leaders in the senate. Reviving a deal that would reopen the government, but only UNTIL JANUARY 15th. And the risk of default, but ONLY UNTIL FEBRUARY 7th. And make no major changes to obama care. The republican demand that led to the shutdown in the first place. The senate deal would set the stage for yet another showdown in just three months. But president obama predicted that next time republicans won't push to the brink. The republicans recognizing this was not a good strategy. And seeing a horrible reaction from the american people. I'm pretty sure they're not going to run this play again. Reporter: As this showdown moves towards end game, house republicans are the clear losers. They push to the brink and have nothing to show for it. This has been a battle with no winners. Just a blow to u.S. Credibility and the prospect of yet another showdown three months from now. And that's assuming we get through this one. Likely to get through this in the next couple days. What has to happen, is the senate has to pass this deal if it comes together today. And the house can't make any changes. They just have to pass it. If not, we're back at the beginning again. Reporter: The house has to simply accept whatever the senate does. And that means a decision for speaker of the house, john boehner. Does he move forward and allow a vote on a bill that the overwhelming majority of republicans in the house will oppose? I assume he will. But his office is not saying right now. Hairy hours ahead. And the clock continues to tick.
This transcript has been automatically generated and may not be 100% accurate.