Payroll Tax Cut and Spending Bill Stall in Senate, Raising Threat of Shutdown

By Rosalind S. Helderman

Negotiations over how to extend a payroll tax holiday for 160 million Americans and avoid a government shutdown this weekend ground to a halt Wednesday after a standoff in the Senate over how to proceed.

Amid the gridlock, Cabinet secretaries for the first time formally alerted affected federal workers Wednesday to the possibility of a shutdown — indicating in an ­e-mail that they would determine later which staffers are “essential” to maintain operations in the event of a funding disruption.

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