President Barack Obama says Democrats and Republicans must compromise to cut the US budget deficit and raise the debt limit.
The House of Representatives is is expected to vote on Friday hours on a Republican bill to cut spending and raise the federal debt limit.
The current limit on borrowing is $US14.3 trillion and the deadline is 2 August.
Mr Obama said time had almost run out, but said he was optimistic that a compromise on the borrowing limit can be reached in time.
He urged Americans to increase pressure on their politicians to resolve the impasse.
''There are plenty of ways out of this mess, but we are almost out of time," he said.
''The time for putting party first is over. The time for compromise on behalf of the American people is now.''
House Speaker John Boehner convened a closed meeting of all 240 House Republicans on Friday morning to discuss changes to a plan to cut the budget while raising the debt limit.
A vote on the bill was called off on Thursday night when it became clear Mr Boehner lacked support within his own party.
Some Republicans oppose raising the debt limit under any circumstance.
Mr Boehner's plan faces certain rejection by the Senate, but the BBC reports it could form the basis of an eventual compromise.
It would reduce spending by about $US900 billion and raise the debt limit by nearly the same amount.
The limit was actually reached in May, but accounting adjustments and higher-than-expected tax receipts were used to continue operating.