As promised by Democratic leaders, the Senate has rejected a short-term funding bill that would keep the government running into November.
The impasse gives Congress little time to resolve the matter before Sept. 30, the end of the current fiscal year.
Along party lines, the House had approved a continuing resolution to fund the government through Nov. 30.
At the center of the partisan dispute is how to fund disaster relief. Senate Democrats want $6.9 billion provided without cutting other areas of the budget, going against previous proposals from some Republican lawmakers.
Congress last agreed on a continuing resolution in April, avoiding a government shutdown.
The Federal Emergency Management Agency has said its disaster relief funds are running low but can last through the middle of next week.
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