Budget

The lawsuit says the Obama administration cannot claim an emergency exception to force employees to work during a shutdown.

The Treasury Department would furlough more than 70 percent of its 127,000 employees in the event of a government shutdown, it announced on its website Friday. 

In all, 92,000 department employees would be furloughed, with IRS staffers working during the height of tax season representing roughly two-thirds of the 35,000 who would still be on the job.

Reid says bill would include "emergency contingency pot" to fund U.S. troops in Afghanistan and Iraq.

Federal regulators are considering relaxing rules on how private companies issue shares that could make it easier for startups to raise capital.

The continued fight to avert a government shutdown is being played out by top advisers to congressional leaders.

European regulators are rolling out a fresh round of bank stress tests, which could force weaker institutions to shape up or shut down.

The IRS is pushing bank HSBC for account data as it hunts for offshore tax evaders.

An accountant's tip has earned him $4.5 million as the IRS's first whistleblower.

The Republican Study Committee proposal signals support for going beyond the $5.8 trillion cut in Rep. Paul Ryan's 2012 plan.

FRIDAY’S BIG STORY:

You can probably guess. 

As we write, Washington is bracing for a potential government shutdown after Friday — even after Republican and Democratic leaders have reported progress in round-the-clock talks. 

Still searching for a deal, House Speaker John Boehner (R-Ohio) and Senate Majority Leader Harry Reid (D-Nev.) are now scheduled to head to the White House at 8 p.m. for their third meeting with President Obama in roughly 24 hours. 

The president of a federal workers' union wrote to lawmakers Thursday asking them to authorize back pay for government employees furloughed during the possible government shutdown. 

In a letter to all lawmakers, Colleen Kelley, president of the National Treasury Employees Union (NTEU), said up to 2 million people who work for the federal government could be without pay during a shutdown. Kelley is requesting that lawmakers include language in the continuing resolution to support back pay for them.

"I am requesting that Congress make its intention clear to pay all federal employees, including those who, through no fault of their own, may be required to stay home," Kelley wrote.

Sen. Rand Paul (R-Ky.) has introduced a bill that would keep federal employees heading to work and other services humming if the current government funding runs out. 

The freshman senator’s legislation, which he said in a statement would lower government spending while a longer-term agreement was hashed out, would also ensure that service members get paid during a shutdown and that funding is not provided for programs created by the healthcare overhaul.

“My proposal seeks to alleviate the worries of people who rely on important services, and fill the gap created by non-passage of spending bills, while forcing Congress to deal with the unsustainable spending,” Paul said in a statement. 

Negotiations continue Thursday; House Speaker and Senate majority leader return to the White House for an evening session.

The federal deficit is still growing, up $113 billion in a year, according to the Congressional Budget Office