Trump and Congress face a trio of difficult budget issues. Congress must pass, and Trump must sign, funding legislation by Oct. 1 to avoid a new shutdown. They need to raise the federal debt limit around the same time, according to the latest estimates. Failure to do so would force the government to make difficult decisions about which obligations to pay, and could be considered a default by investors, shaking markets and an economy already showing some signs of alarm…

Tensions between key Senate Republicans and White House acting chief of staff Mick Mulvaney have been on display for months, and GOP lawmakers and aides partially blame that frayed relationship for the halting pace of talks. Mulvaney was a member of the conservative House Freedom Caucus before he joined the administration, first as White House budget director before becoming acting chief of staff, and he has advocated dramatic spending cuts opposed by lawmakers of both parties.

Mulvaney has been slow to come around to the need for a bipartisan budget deal that would raise domestic and military spending caps, even after McConnell met privately with Trump last month and got the president’s blessing to proceed with such a deal, said a senior GOP Senate aide who spoke on the condition of anonymity to describe private conversations.