Transcript for Obama Reacts to the Standoff Over Healthcare, Debt Ceiling
This is a special room. Again that there -- New York this ABC news digital special report -- final countdown with a little more than seven hours before the government shuts down. President Obama is set to speak once again to the American people today the senate and the house continued exchanging and rejecting each other's proposals. To keep the money flowing into Washington with Democrats refusing to give an inch on the president's health care plan and Republicans demanding the law -- funded. -- shutdown does not seem almost inevitable. I want to bring in our political director recliner in Washington DC watching this back and forth as we are watching the white house press briefing room. And the president William Macon is where the party mr. -- but first Rick I want to ask you about this what are we expecting to hear from the president as he makes his last appeal. He is not -- -- give all indications from the White House is that they are prepared to go to midnight without government funding bill in place -- that's when it comes to you this is brinkmanship at the highest level now only seven hours left. President knows the senate has acted he wants but all the pressure imaginable back on the House of Representatives -- he knows that there are these divisions. That are rivaling that caucus up right now he wants to exploit that he wants the American people -- be lighting up the phone lines in these final few hours so -- 3:1 o'clock a little bit as her way to the president's make the podium there what happened today yes -- would have a house convened. And putting those provisions into the latest bill that would defund the president's Affordable Care Act for one year it was rejected by the senate and now -- stands. So the senate waited about 36 hours to act and and they punted it back to the house because they they know that the hours. Our short right now the senate saying. We -- not -- accept any conditions on obamacare we just -- -- on the government period the end Democrats in the house came out that we're ready to assist speaker Boehner. If he's gonna bring it to the floor will help in pass it was just maybe a few dozen Republicans. On board but house Republicans feel like they need to continue to go delivering on this they want to give it another go. In trying to insert some new conditions about obamacare -- -- the federal subsidy out of -- out of out of health care for federal workers including members of congress made another symbolic point here. Before realizing that the government is is going to be running out of money a few hours so at this point the house is crafting its own version is that correct. That's right in their going to be voting sometime later this afternoon and again descended back to the senate with very little time left -- teams -- -- -- -- -- let's go to the president. And to congress. -- should be. Fairly simple. -- budget. And pay America's bills. But if the United States congress does not fulfill. Its responsibility to pass a budget today. Much of the United States government will be forced to shut down tomorrow I want to be very clear about what that shut down would mean. What -- remain open and what will not. With regard to operations -- will continue. If you're on Social Security you'll keep receiving your checks. If you're on Medicare your doctor will still -- -- -- -- will still be delivered. And government operations related to national security or public safety will go wrong. Our troops will continue to serve with skill honor and courage. Air traffic controllers. Prison guards. Those. War. With border control -- Border Patrol will remain on their posts. But their paychecks will be delayed. Until the government reopens. NASA will shut down almost entirely -- mission control remain open to support the astronauts are on the space station. I also want to be very clear about what would change. Office buildings were close. Pay checks won't be delayed. Vital services that seniors and veterans women and children. Businesses and our economy depend on -- be hamstrung. Business owners would see delays and raising capital seeking infrastructure for Mets or rebuilding after hurricane sandy. Veterans who've sacrificed for their country will find their support centers on -- Tourists will find every one of America's national parks and monuments from Yosemite -- the Smithsonian the statue of liberty immediately closed. And of course the communities and small businesses that rely on his national treasures for their livelihoods will be out of customers -- And in keeping. -- -- The broad ramifications -- was shut down I think it's important that everybody understand the federal government is America's largest -- More than two million civilian workers and one point four million. Active duty military serve in all fifty states and all around the world. In the event of a government shutdown hundreds of thousands of these dedicated public servants who stay on the job we'll do so without pay. And several 100000. More will be immediately and indefinitely fertile without pay. Well of course will not be furloughed. Are the bills that they have to pay their mortgages. Their tuition payments their cardinals. These Americans are neighbors. Their kids go to -- schools. They worship where we do they serve. Their country with pride. They are the customers of every business in this country. And they would be hurt greatly. And as consequence all of us will be her greatly should congress -- to shut the people's government. So Sean O'Donnell will have a very real economic impact. On real people. -- shut. -- shutdowns have disrupted. The economy significantly. This one want to. It would throw a wrench into the gears of our economy at a time when those -- of gained some traction. Five years ago right now our economy was Imelda. Today our businesses have created seven and a half million new jobs over the past three and a half years. Housing market is healing. And our deficits are falling fast. The idea of putting. The American people's harder progress that risk. Is the height -- irresponsible. And it doesn't have to happen. A repeat this. It does not have to happen. All of this is entirely preventable. If the house chooses to do what the senate has already done. And that's the simple act of funding our government without making extraneous. And controversial demands in the process. The same way other congresses. Have for more than 200 years. Unfortunately right now house Republicans continue to tie funding. Of the government's ideological demands like limiting the woman's access to contraception. Or delaying -- -- care act. All to save face after making some possible promises to the extreme right wing of their party. Let me be clear about -- An important part of the Affordable Care Act takes effect tomorrow no matter what congress decides to -- day. -- Affordable Care Act is moving forward. That funding is already in place. You can't shut it down. This is a law that passed both houses of congress. Along the -- my signature along with the Supreme Court upheld as constitutional. Along that voters chose not to repeal last November. Along that is already providing. Benefits to millions of Americans in the form of young people staying on their parents plan. -- 46. Seniors getting cheaper prescription drugs. Making sure that insurance companies are imposing lifetime limits. When you already have -- health insurance. Providing rebates for consumers when insurance companies are spending too much money on overhead and instead -- healthier. Those things already happening. Starting tomorrow tens of millions of Americans will be able to visit health care dot gov. To shop for affordable health care coverage. So Americans who've lived. Four years in some cases with the fear that one illness could send them in the bankruptcy. Americans who've been priced out of the market that's because they've been sick ones they'll finally be able -- before. Coverage. All the coverage. Many of them for the first time in their lives. Someone may be sick as we speak. And this is their. Best. Opportunity. To get some security of some relief. Tens of thousand Americans die every single year because they don't have access to affordable health care. Despite this. Republicans have said that if -- -- these Americans out of affordable health cure for one warrior. If we sacrifice. The health care of millions of Americans. To milk fund the government for a couple more months. Does anybody truly believe the we won't have this fight again a couple of more months. Even a Christmas. But here's the bottom line I'm always -- to work with anyone. Either party. To make sure the Affordable Care Act works better. To make sure government works better. I'm are always -- work when anyone to grow our economy faster. Court created new jobs faster. To get our fiscal house in order for the long run. I've demonstrated this time and time again. Oftentimes to the consternation of my own party. But one faction. Of one party and one house of congress. In one branch of government. Doesn't get to shut down the entire government just to refight the results of an election. Keeping the people's government open. Is not a concession to me. Keeping vital services running and hundreds of -- Americans on the job. There's not something you give to the other side. It's our basic responsibility. It's something that we're going for a military and our business and our economy. And all the hardworking people out there that. Person working for the agricultural department on some rural communities out their help in some farmers. Make sure that. -- -- Some modest profit for all the hard work to put -- -- the person working for. -- who's helping somebody. Buy a house for the first time. The summary of it in -- VA office who's. Counseling warmer Betts who's got PT SB. That's. Who were here to serve. That's why we're supposed to be tearing up his responsibilities. That's why we should be avoiding this kinds of constant brinksmanship. It's something that we do. In the ordinary process of this extraordinary system of government that we have. You don't get. To extract -- ransom. For doing your job. For doing what you're supposed to be doing anymore. Or just because there's a -- -- that you don't like. The American people sent us here to -- -- -- is here to make sure that. We're doing everything we can't make their lives a little bit better. To create new jobs to restore economic security. To rebuild prospects. Upward mobility that's what they expect. And they understand that their differences between the parties and we're going to be having some tough fights around those differences. And I respect the fact that the other -- is not -- agree with me -- 100% -- -- time just like I don't agree with them. But they do also expect that we don't bring the entire government to a halt -- the entire economy to a -- Just because those differences. That's what they deserve. It worked too hard for too long to recover from. Previous crises. Just to have folks here in Washington manufacture yet another that there depict themselves. So congress needs to keep our government -- it. Needs to pay our bills on time. And never ever threaten the full faith and credit the United States of America. And time's running out. My hope and expectation. Is that in the eleventh hour once again. That congress will choose do the right thing and that the House of Representatives in particular -- choose the right. Thank you very much. And so with less than seven hours ago President Obama making one last appeal to Republicans and the American people as congress prepares to shut down. The American government for the first time since 1996. Back with us now as -- political director Rick Klein. Along with Aaron task not -- talk about some of the headlines about -- -- come out of that news conference and also the possible ramifications if that countdown clock does reach zero. And there is no compromise in place by midnight tonight Rick I would start with you. Very stark tone there or is this increasing the chances any kind of deal. No I don't think there's anything that house Republicans haven't heard before although the president trying to put pressure on them. To cave in the eleventh hour that's not gonna happen realistically six hours and 45 minutes left before midnight. There's no inclination of the house -- prepared -- -- for the president try to serve a couple of different roles one is that to outline the stakes for people. Also not freak them out about the fact the government will shut down making pains to point out that that you're still and get your mail and you're responsible security -- -- at those -- But also trying to portray the real impact here but I think -- stark line in the sand. When we've heard before but maybe not quite as vividly. As the president right now -- look you're not doing me any favors by just keeping the government open that's your job period the end no concessions no need to compromise that's not what this is about. In in some of the strongest language he used at that was part of the quote was you don't get to extract -- ransom for doing your job and in no uncertain terms. That has -- -- message at the White House has been on over -- past couple of days but Rick I want to ask you again not to put you on the spot here or try to read too far into the future but. Have we heard from the rhetoric today both from Democrats and Republicans. -- about the possibility of any comments I've kind of compromise -- either way that this could lean. Compromise is not in the -- back there -- even discussions going on at this late hour what is in the -- is the possibility for. Back up plans that just kind of saved face for house Republicans at this point we know with a political -- is headed on this we know what has to be done. We know what -- likely outcome is going to be but it's very likely at this stage there we're real happy have to go out over the cliff before we get there we're gonna go. Right through this government shut down it may be a day or two before house Republicans -- their wounds and pick themselves up a little bit. But right now -- this is the president was not any negotiating mood at all Rick essentially explain what the position that house speaker John Boehner -- at this point. Position he's in is that he needs to get 217 votes to pass something and he wants to get those votes among Republicans because he leans on Democrats. That's how you no longer leave the House of Representatives you can leave them there but you never -- -- another leadership stand again so. He's got a very narrow margin 233 house Republicans -- -- seventeen of them to be on board so. Just seventeen of them saying we're not gonna support you. That's enough to sink the whole thing so he's trying to push -- as far as possible keep -- caucus united mills with the united about taking a stand against obamacare. He also knows that a government shutdown is a very bad thing. And it looks bad for his conference to be part of this so he's trying to -- -- as much as possible but at this stage one -- I've heard from Republicans. Speaker Boehner is in showing mode not just telling mode as in he's trying to show -- -- fellow Republicans that this strategy isn't gonna work they're not believing his words they need to see -- their actions. So that -- a political activity this happen in Washington DC but clearly having an effect on the markets and the economy in a general overall. Aaron I want to ask you about that because the Dow closed down better than -- 120 points they -- all three -- all three -- inspected the same thing. Looking at the point now that we are a little bit more than six hours -- from a shut down how much worse should we expect things to get for tomorrow morning. -- but then I was actually surprised American far more today it was down more than -- points the Dow its worst point of the session today I think there's still a sense on Wall Street that. Yes there's a lot of drama and gamesmanship in Washington but they'll eventually get their acts together before they do any serious damage. I mean -- one hurt you -- even at three -- -- of the government is not a major economic event. What would be a major event it was it -- to shut down. Last indefinitely. And -- if we get to the debt ceiling vote in mid October. And they're still battling it out he can't reach agreement on that that could cause economic chaos. That your secretary is set October 17 as a job that -- when the government's gonna run out of money to pay its bills. And so it everyday vehicles is that those going to be a little bit more tightening -- the collars on Wall Street but again. I think the prevailing wisdom whether it's right or not on Wall Street is that the folks in Washington bill play their games and ultimately figure this out -- kind of deal if not today than some. So a lot of people are wondering exactly how the markets will react and play out to that now that there is that October 17 deadline also has had -- rise as well. What companies what sectors are going to be most affected by this congress can't reach a deal. -- well I think -- be -- defense sector was when you think of first of all even though. The -- the military is really not affected directly by this I do you think that there is you know any company that does business with the US government which is tons and tons of companies. The other you heard the president talk about it you know there -- hundreds of thousands of Americans who work for the federal government if they're not getting a paycheck. They're not going to be going to the -- so it could hurt retail retailers -- from Wal-Mart. The Saxon Nordstrom's. I'm so he could have a very broad based impact on the economy across a lot of different sectors. Again that's it fitting if it goes 21 days that would be major problem because then we would -- -- October 17 deadline for the debt ceiling. If it's a couple of days I don't I think -- the market moves on from this in this is -- to focus on earnings which are going to be hitting us and another -- -- -- but. The longer this goes on the worse it is for the financial markets talk to me about than some of the specifics that we can potentially forecast either by. Previous experiences or just by the current market conditions. How much is -- gonna cost the American economy each day or potentially weak that there's a -- Relevant to break it down by the day but I've seen some estimates that if I were to go on for the full quarter. It would drag down GDP by a full percentage point. So right now US GDP is somewhere Q2 and half percent. Growth rate so if -- cut that by 1% then you're looking at you know a GDP -- with a one handle. Which is awfully close to zero and if -- a kind of other shock there were some news that Italy today that spooked the market for a couple minutes Europe is still basket case. So a lot of things can go wrong in the economy's. Still very tenuous position and I think that's the real risk here is that the longer this goes on the more of -- real world economic effect it has -- that will. Circle back. And start debate the the real economy in the financial markets. And let's not forget this I think was a key reason why the Fed didn't taper. At its last meeting I know that. In the media so lucky thing people forgotten about but a big reason why the Fed is still got its pedal for the metal is because they see what's going -- Washington this function there and they're worried about what impact. That's gonna have on the real economy. Rick -- before we'll let you go to the. We got six and hours and forty minutes now left there is not that -- the last word just yet we're still seeing. The house and the senate going back and forth I think the president's words -- likely to be allowed us. In a debate that's gonna have lots of -- words before this is over. I think we are headed for that proverbial there that this -- that we thought that was a long time it's been twenty years as we have -- we've come to that they bit the line so many times this time is actually happening. All right Aaron task from Yahoo! finance and Rick -- and Washington DC gentlemen thank you both for that. We have a complete report. On abcnews.com. This is an ABC news digital special report complete coverage later after the deadline on Nightline. ABC news after midnight for now on -- that's -- --
This transcript has been automatically generated and may not be 100% accurate.