Neither Republicans nor Democrats have offered any sign of agreements on either the shutdown or the debt ceiling as an October 17 deadline looms.
The US Senate overwhelmingly approved legislation to avert the "fiscal cliff" by stopping most of the tax hikes and across-the-board spending cuts.
Barack Obama is due to host congressional leaders including his Republican rivals in a last-ditch bid to halt America's slide over the fiscal cliff.
Reports say the Democrats will retain control of the US Senate, after earlier reports said Republicans would keep the House of Representatives.
US lawmakers have abandoned efforts to rein in debt in a sign that Washington will be unlikely to resolve the tax and spending dispute before 2013.
Having said no to taxes for months, Republicans now are saying maybe in the face of public disgust over a deadlock in the US Congress.
A last-gasp deal to raise the US borrowing limit cleared its biggest hurdle in Congress on Monday, warding off the risk of a debt default.
Hopes have emerged that US lawmakers are close to a last minute deal that could raise the US debt ceiling.
Efforts to avoid an unprecedented US debt default suffered a new blow on Thursday when fiscally hardline Republicans blocked a budget deficit plan.
The US standoff over debt plans offers little hope of compromise, increasing the threat of a ratings downgrade that could sow chaos in global markets.