In less than two weeks, the Treasury Department says it won't be able to pay the nation's bills unless Congress and the president reach an agreement to raise the debt ceiling.
Both sides remain entrenched and have made little progress, despite the looming deadline.
Speaking at a town hall meeting in Maryland, President Barack Obama said a deal to increase the nation's borrowing power must include tough cuts and tax hikes.
"I'm willing to sign a plan that includes tough choices I would not normally make, and there are a lot of Democrats and Republicans in Congress who I believe are willing to do the same thing," he said.
"The only people we have left to convince are some folks in the House of Representatives," he said. "We're gonna keep on working on them."
House Speaker John Boehner said Republicans are nowhere near a deal with the president.
"At the end of the day we have a spending problem," he explained. "Somebody's got to get serious about cutting spending, and our friends across the aisle aren't at all serious about doing what the American people are demanding -- spend less."
Meanwhile on Capitol Hill, the Senate voted against the Tea Party-back "cut, cap and balance" plan produced by the House.