AP Special Correspondent
WASHINGTON (AP) -- For the first time in nearly two decades, the federal government staggered into a partial shutdown early Tuesday morning after congressional Republicans stubbornly demanded changes in the nation's health care law as the price for essential federal funding and President Barack Obama and Democrats adamantly refused.
As Congress gridlocked, Obama said a "shutdown will have a very real economic impact on real people, right away," with hundreds of thousands of federal workers furloughed and veterans' centers, national parks, most of the space agency and other government operations shuttered.
He laid the blame at the feet of House Republicans, whom he accused of seeking to tie government funding to ideological demands, "all to save face after making some impossible promises to the extreme right wing of their party."
House Speaker John Boehner, R-Ohio, responded a short while later on the House floor. "The American people don't want a shutdown and neither do I," he said. Yet, he added, the new health care law "is having a devastating impact. ... Something has to be done."
The stock market dropped on fears that political deadlock between the White House and a tea party-heavy Republican Party would prevail, though analysts suggested significant damage to the national economy was unlikely unless a shutdown lasted more than a few days.
A few minutes before midnight, Budget Director Sylvia Burwell issued a directive to federal agencies to "execute plans for an orderly shutdown." While an estimated 800,000 federal workers faced furloughs, some critical parts of the government -- from the military to air traffic controllers -- would remain open.
Among the immediate casualties was tourism at the Capitol. The visitor center announced it would be closed "due to a lapse in government funding," and all tours of Congress suspended.
The interruption in federal funding sent divided government into territory unexplored in nearly two decades. Then, Republicans suffered significant political damage and President Bill Clinton benefitted from twin shutdowns. Now, some Republicans said they feared a similar outcome.
If nothing else, some Republicans also conceded it was impossible to use funding legislation to squeeze concessions from the White House on health care. "We can't win," said Sen. John McCain, R-Ariz.
"We're on the brink," Sen. Barbara Mikulski, D-Md., said shortly after midday as the two houses maneuvered for political advantage and the Obama administration's budget office prepared for a partial shutdown, the first since the winter of 1995-96.
On a long day and night in the Capitol, the Senate torpedoed one GOP attempt to tie government financing to changes in "Obamacare." House Republicans countered with a second despite unmistakable signs their unity was fraying -- and Senate Democrats promptly rejected it, as well.
With Republicans defiant, the House voted 228-199 to re-pass their earlier measure and simultaneously request negotiations with the Senate on a compromise. Boehner later sidestepped when asked if he would permit a vote on a standalone spending bill that would allow the government to reopen.
Senate Majority Leader Harry Reid, D-Nev., said the Senate would reject the House move in the morning. "That closes government. They want to close government," he said of House Republicans.
As lawmakers squabbled, Obama spoke bluntly about House Republicans. "You don't get to extract a ransom for doing your job, for doing what you're supposed to be doing anyway, or just because there's a law there that you don't like," he said. Speaking of the health care law that undergoes a major expansion Tuesday, he said emphatically: "That funding is already in place. You can't shut it down."
Some Republicans balked, moderates and conservatives alike.
Rep. Phil Gingrey of Georgia said it felt as if Republicans were retreating, given their diminishing demands, and Rep. Scott Rigell of Virginia said there was not unanimity when the rank and file met to discuss a next move.
Yet for the first time since the showdown began more than a week ago, there was also public dissent from the Republican strategy that has been carried out at the insistence of lawmakers working in tandem with GOP Sen. Ted Cruz of Texas.
Rep. Charles Dent, R-Pa., said he was willing to vote for stand-alone legislation that would keep the government running and contained no health care-related provisions. "I would be supportive of it, and I believe the votes are there in the House to pass it at that point," the fifth-term congressman said.
Other Republicans sought to blame Democrats for any shutdown, but Dent conceded that Republicans would bear the blame, whether or not they deserved it.