Transcript for Obama To Congress: "Pass Budget and Pay Bills on Time"
This is a special report from ABC news. I'm Dan cuts -- New York -- -- ABC news digital special report President Obama is expected to make an unscheduled statement at the White House briefing room. As the house and the senate are debating a plan to avoid a government shutdown is scheduled for next Tuesday that as when the current budget will end. And right now it has been a back in fourth in Washington DC the senate this afternoon passed the plan to keep the government running. What's the current budget ends on Tuesday that -- is now headed to the house and this. All coming after the house passed a plan that would also keep things going but would strip funding from the president's signature legislation. The Affordable Care Act and now time is running out with that Tuesday deadline looming. There is fighting on both sides of the -- and in fact even within the party's White House is now holding this news conference let's listen. Before us discuss the situation congress -- -- are few things but two important opportunities in our foreign policy. Just now I spoke on the phone with president -- -- of the Islamic Republic of Iran. -- it was discussed our ongoing efforts to reach an agreement over Iran's nuclear program. I reiterated to president Ronnie Wallace at New York. While there will surely be important obstacles to moving forward. And success is by no means guaranteed. I believe we can reach a comprehensive solution. I've directed secretary -- to continue pursuing this diplomatic effort with the Iranian government. We had. Constructive discussions yesterday in New York -- our partners. The European Union the United Kingdom France Germany Russia and China together with -- -- alliance foreign minister. Going forward Raza Rabbani and I have directed our teams to continue working expeditiously. In cooperation with the and throughout this process will stay in close touch -- our friends and allies in the region including -- were. And I were mindful of all the challenges. The very fact that this was the first communications between an American and -- and president. Since 1979. Underscores the deep mistrust between our countries. But it also indicates the prospect of moving beyond that difficult history. I do believe that there as a basis for resolution. Iran's supreme leader has issued a fatwa against the development of nuclear weapons. -- raw honey has indicated that Iran will never develop nuclear weapons. Made clear that we respect the right of the around -- people to access peaceful nuclear energy in the context of Iran meeting its obligations. So the test will be meaningful transparent and verifiable actions. Which can also bring relief from the comprehensive international sanctions that are currently in place. Resolving this issue obviously could also serve as a major step forward and a new relationship between the United States and the Islamic republic of -- one based on mutual interest and mutual respect. It would also help facilitated -- relationship between Iran and the international community as well as others in the region. One that would help the -- people -- extraordinary potential. But also help us address other concerns that could bring greater peace and stability. At least. The path. To a meaningful agreement. Will be difficult. And at this point both sides have significant concerns that we'll have to be overcome. But I believe we've got a responsibility. To pursue diplomacy that we have a unique opportunity to make progress with the new leadership in Tehran. I also communicated to president outlining my deep respect for the Iraqi People. As I said before this comes on the same day that we can accomplish a major diplomatic breakthrough on Syria. As the united nations Security Council will vote on a resolution. There would require we have -- regime to put its chemical weapons under international control so they can ultimately be destroyed. That's binding resolution will ensure that the Assad regime must keep its commitments or face consequences. Will have to be vigilant about fallen through but this could be a significant victory for the international community. And demonstrate how strong diplomacy can allow us to secure our country and pursue a better world. Now. America's security and leadership. Don't just depend on our military strike or alliances or diplomacy. First and foremost. American strength depends on a strong economy. Were middle class is growing and everyone. Who works hard has a chance to get ahead Islam is -- a few words about the situation that's developed over the past few weeks on Capitol Hill. -- -- at home the United States congress has to pressing responsibilities. Pass a budget on time and pay our bills on time. If congress chooses not to pass a budget by Monday. The end of the fiscal year there -- shut down the government along with many vital services the American people depend -- The good news is within the past couple of hours the United States senate Democrats and Republicans. Acted responsibly. By voting to keep our government open and delivering the services. The American people expect. Now it's up to the Republicans in the House of Representatives. To do the same I say that because. Obviously Democrats have. A great interest in making sure that these vital services continue. To help the American people and so far and other Republicans in the House of Representatives have refused to move forward and here's. The fact unlike the last time they -- this course of action. This debate isn't really. About deficits. In fact our deficits are falling for the fastest pace. That they have in sixty years. By the end of this year we will have cut. Our deficits by more than half since I took office. So that's not what this is about and in fact if you've been following discussion. The Republicans in the house don't even make a pretense that that's what this is about. Instead the house Republicans are so concerned -- appeasing the Tea Party that they threatened a government shutdown or worse. Unless I got or repeal the affordable care. -- service yesterday when we were Peter. That's not gonna happen. More than a hundred million Americans. Currently already have new benefits and protections under the law. On Tuesday about forty million more. Americans won't be able to finally buy quality affordable health care just like anybody else. Those market places will be open for business on Tuesday no matter what even if there's a government shutdown that's a done deal. -- said before if Republicans have specific ideas. On how to genuinely improve the -- Rather than got it rather than go -- it. Rather than repeal it. I'm happy to work with them on that through the normal democratic processes but that will not happen under the threat -- -- shut down. So over the next three days house Republicans will have to decide. Whether to join the senate. And keep the government open. Or shut it down because they can't get their way. On an issue that has nothing to do. Where the -- I realize that a lot of what's taking place right now -- political risks grandstanding but. This grandstanding has real facts on real people. If the government shuts down on Tuesday military personnel including those risking their lives overseas for us right now will not get paid off. Federal loans for rural communities. Small business owners. Families buying a home will be frozen I'm already starting to get letters from people worried that this will have an impact on them directly. Critical to search and -- lifesaving discoveries will be immediately halted. Federal government has a large role across the country and touches the lives of millions of people. And those people will be hard. And even the threat of a shutdown already is probably having a dampening effect on our economy we saw that the last time. These kinds of shenanigans were happening up on Capitol Hill. So many Republican. In congress who is currently watching. I'd encourage you to think about who we are hurt. They're probably young people in your office right now who came to work for you. Without much play because they believe that public service was no you're preparing to send them home without -- -- You've got families with kids back in your districts who serve their country in the federal government. And now they might have to plan how they're gonna get by if you shut the government down. Past shutdowns have disrupt disrupted the economy and -- -- -- as well. -- would throw a wrench into the gears of our economy. At a time when those -- have gain some traction. And that's why many Republican senators and many Republican governors have urged Republicans to knock it off pass a budget and move off. Let's get this done. This brings me to congress' second responsibility. Once they vote to keep the government open. They also have to vote within the next couple of weeks to allow the treasury. To pay the bills. For the money that congress has already spent. -- -- -- -- -- Is simple way authorizing. The treasury. To pay for what congress has already -- -- Failure to meet this responsibility. Would be far more dangerous than a government shut down. -- would affect only being an economic shut down what impacts not just here but around the world. We don't fully understand. What might happen. The dangers involved because. No congress has ever actually threatened default. But we know it would have a profound destabilizing effect on the entire economy. On the world economy because America. Is. The bedrock. World investment. The dollar is -- reserve currency. The debt that is issued by the treasury. Is the foundation. For our capital markets. That's why you don't fool with. Some Republicans have suggested. That. Unless I agree to an even longer list of demands. Not just gutting the healthcare law but cutting taxes for millionaires or rolling back. Rules on big banks and polluters or other pet projects that they'd like to street. And they've been trying to get past. Over the last couple years. That they would push the button. Draw America into default for the first time in history. And risk throwing -- back into a recession. -- I am willing to work would anybody who wants to have a serious conversation about our fiscal future. I've demonstrated that by putting forward serious reforms to tax and entitlement programs that would bring down our long term deficits. I've said in the past and I will continue to say that I'm willing to make a whole bunch of tough decisions. Ones that may not be. Entirely welcome by my own party. But we're not gonna do this under the threat blowing up the entire economy. -- will not negotiate. Over congress' responsibility to pay the bills that have already been racked up. Voting four of the treasury to pay America's bills. Is not a concession to me. That -- that that's not doing me a favor. That's simply carrying out the solemn responsibilities. That come with holding office up there. I don't know -- I can be more clear about this. Nobody gets to threaten the full faith and credit of the United States. Just to extract political concessions. -- -- gets hurt our economy. And millions of innocent people just because there a couple of laws that you do not like. It has not been done in the past. Prior to start dornin now. I'm not gonna start setting a precedent. Not just for me. But for future presidents. Where. One chamber. In congress. Can basically say each time. There needs to be a vote to make sure treasury pays its bills were not -- -- it. Unless. Our particular hobby horse. Gets advanced. Imagine if you had a Republican president. And a democratic speaker and democratic speaker said well we're not gonna pass a debt ceiling unless we raise corporate taxes by 40%. More or less we pass background checks on guns. Or whatever other list of agenda items. Democrats -- -- was -- -- Does anybody actually think that. We will be hearing from Republicans -- that was acceptable behavior. That's not our constitutional systems designed. We are not gonna do it. The American people -- work too hard to recover from. A bunch of crises. Several of them our the last -- -- Inflicted by. Some of the same folks in congress that we're talking about now. To see extremists. In congress because another crisis. And keep in -- by the way this whole thing has to do -- keeping the government open for a few months. The continuing resolution. -- big old that's designed to avert a government shutdown. Basically just -- government for another couple months so we could be -- on this all over again. Sure the American people are thrilled about that. That's why we've got to break this cycle. My message to congress is this do not shut down the government. Do not shut down the economy pass a budget on time pay our bills on time. Refocus on the every day concerns of the American people. There will be differences between Democrats and Republicans. We can have all kinds of conversations about how to resolve those differences. There will be areas where we can work together there -- be areas where we disagree. But do not threaten to burden of the house down. Simply because. You haven't got a 100% of your way. That's not our democracy is supposed to work. Every day that this goes off. Another. We're not focused on doing what we need to be. Focused on -- Rebuilding this great country of ours so that our middle class is growing and Gerber is got opportunity of the world were part. That's what I'm focused on -- -- -- for should be focused on as well. Thank you very much are much. The president wrapping up and -- scheduled news conference this Friday afternoon and a number of developments coming out. Of that statement their first and foremost the president's and that he did speak with Iran's president not that long ago about that country's nuclear program. Those discussions taking place in a telephone call. Also regards to international affairs earlier that -- his he later on this evening the united nations Security Council we voting. On a resolution. And handling -- serious chemical weapons all fifteen members are expected to vote on that on taking possession of those chemical weapons. And dismantling the president seeming very optimistic on both of those international issues. Then the attention was turned to what is happening in Washington specifically -- Capitol Hill right now the budget showdown. As that Tuesday deadline is very quickly approaching. The senate just this afternoon passing a resolution that would keep the government operational until November but. Would also continue funding for the president's key piece of legislation the Affordable Care Act known. By many as obamacare that is -- -- very version of what was passed in the house earlier this week that stripped that funding from that program. The president also talking about the importance of October 17 that is the day when the country will reach the debt ceiling that debt limit. And that was of great importance to the president -- he was addressing both of those domestic issues and those international points. In this impromptu. Afternoon news conference to put some context into this I want to bring in -- cent toll from Yahoo! finance. And Mike the president says the debate is far as the budget is concern is about Obama care about the Affordable Care Act but clearly though. There are economic implications. Of what could happen if in fact the government -- shut down on Tuesday. -- not good ones either I don't think that it would be necessarily a reason for -- -- for the economy to really take a big tumble. But obviously almost everybody involved except people who are trying to gain leverage ones -- any other politically. Want to see the government funded. Even if it is just in this temporary continuing resolution for another couple of months -- -- the you know. The stakes are far out there on the table. I don't think there was too much of the surprises in in the way the tone that the president took care. But why especially on the debt limit has. Been consistent from the prior two times this has come up. Emphasizing again and again that is not new spending his time his authorization for more debt it simply -- -- the mills and Mike as you're here in the back and they can hear the -- from. The Dow closing and I want to take a look and see where trading is ending for the day. The Dow is down about 73 points 151254. Might -- you hit on another point of fact the matter is that that debt ceiling deadline is coming up very quickly in the middle of October. Further implications then for how the market and the overall US economy could be affected if in fact that does get reached. Yeah that certainly there are now I don't think that the markets are inclined to kind of -- proactively -- speaking really get ahead of this until -- see. Whether in fact it's going to go down to the wire beyond that deadline -- I do think there's actually a line of thinking that's kind of cut gone across Wall Street last couple of days which is well. If the Republicans want to make the fight opt out. The continuing resolution about the actual budget shutdown the government for awhile and that tends to be the front that they're willing to man then that might actually mean. That's where the -- happens and therefore the debt ceiling would not be as contentious and I think that would be the preferable. Trade off. If in fact -- could be the way it goes. But not -- debt ceiling if we really get right up to it. Most likely you would see the market's kind of climb jump a little bit ahead of that now I say that but on the other hand when we look back to 2011 when it really did seem -- a game of chicken gone bad. We had a downgrade of the US credit rating and all the rest. In retrospect no investors really feel that Smart for having -- even though was genuinely. Pretty bad -- the situation was at risk. Consumers though while they're in better shape than they were two years ago I do think they would -- pull back and -- cautious and you start to see this sentiment readings come and worse than expected. And of course Wall Street is watching Washington and Washington watching Wall Street as well. At the same time now want to talk a little bit about what happened on the senate floor today a number of times we've heard from Texas senator. Ted Cruz what -- bit of what he said after the senate voted to put on obamacare funding back into the budget -- I encourage every member of congress can't remember this. To listen to their constituents to listen to the American people the American people are suffering and here is important. Millions of Americans. Are struggling to find a job millions of Americans are at risk of being forced him to part time work plan. Millions of Americans are seeing skyrocketing health insurance premiums and millions of Americans are losing their health care or at risk of losing their health care. Today unfortunately the United States senate and the Democrat led senate. Refused to listen to the American. -- -- wanted to ask you about this and this is not taking any kind of a political stance but what is the reality of the effects of obamacare hasn't been fully implemented yet the open -- starts on Tuesday. What -- we already seen then. Well it's it's very difficult to actually draw -- -- causality from. The impending. You know engagement of -- -- Yes have we seen some smaller businesses say that they would try to limit hours and some chains say that they might try to limit hours. Potentially but I think that's kind of what change do. Almost all the time yes you definitely seen some bigger companies take the opportunity to maybe spin off some of their employee health care into exchanges we don't even know -- Is in fact just because obamacare is coming it's very difficult to come up -- A very solid. You know kind of -- leads to be explanation for whether the -- the imminence of the law has created a lot of change in economic dividends you know it's created a lot of confusion among consumers. A lot of people just kind of don't know what they might or might not have to do and I think that's just going testify in the implementation of a very broad national. You know. The public. Law like this is going to necessarily have glitches -- you're going to have confusion and here's the thing about it though. The costs are much more easily calculate -- upfront. Then there very long term benefits of having more people covered -- more people would have preventative care all the things. That on paper according to the academics and that they -- additions should actually worked better. If you have more people covered. -- ongoing emergency rooms for example -- driving up costs are very -- For emergency care so it's very very difficult to tease out what -- to know though is you know. This is at least to a large degree on both sides about defending one piece of legislation narrowly passed obamacare and you know the Republicans wanting to have it. Remain an issue and remain -- contentious issue in 2014 and sixteen. One of the things that the president spoke about about the potential effect if in fact there is a government shutdown would be. Government employees military personnel would have a delay and their paychecks what are some of the possible effects and it's a -- government -- -- does in fact take place on Tuesday. Well he had did you say you have furloughs most likely at least in stages. What -- we -- nonessential employees. You know we've been through this before it's actually kind of interesting if you go back. I think 1995 and six it actually seemed. A lot more dire than it did this once it got under way it was seen as temporary and got back to work to -- -- but yes on a week to week basis. Lots of people out of work lots of people getting fewer hours. And lot less money kind of heading into the economy and a real time basis so similar to the sequester across the board cuts that we saw. Beginning early this year which you know that the economy has weathered OK but not without. Pain and not without being a headwind to the overall growth picture. All right Mike -- -- from Yahoo! finance Mike thank you for that. Of course president -- in -- impromptu news conference as that budget deadline is looming. For next week we have complete report and ABC news dot conference on -- -- -- New York with this ABC news digital special report. This has been a special group. Report from me.
This transcript has been automatically generated and may not be 100% accurate.