According to a report from the Wall Street Journal:
"Senate leaders attempting to avoid a U.S. debt default remained at loggerheads Sunday and escalated the standoff by reopening the contentious issue of automatic spending cuts, damping hopes that some of Congress's most canny negotiators would break the impasse.
As the search for a way to end the partial federal shutdown and avoid a debt crisis shifted to the Senate, Democrats made plain that one of their top priorities was to diminish the next round of across-the-board spending cuts, known as the sequester, due to take effect early next year".
Many Republicans, including Senate Minority Leader Mitch McConnell (R., Ky.), oppose retreating from those cuts. That set up a clash that seemed almost as intense as the one that caused budget talks between House Republicans and President Barack Obama to collapse Friday.
"Total federal spending has now gone down for two years in a row—the first time that's happened since the Korean War,'' Mr. McConnell said Sunday. With the additional sequestration cuts on tap for 2014, the budget limits have produced "the most significant spending reduction in modern history and Senate Republicans will not accept anything that undoes these cuts."