US government shutdown will continue into Monday as senators fail to reach deal

American political leaders failed to reach agreement on ending the US government shutdown on Sunday night, postponing a planned vote until midday on Monday.

It means federal agencies and services will remained closed when the working week begins.

Hopes had grown during Sunday that a deal might be within reach after about two dozen Republican and Democratic moderates met to discuss immigration issues.

However, with both sides blaming the other for the shutdown Senate leaders decided to abandon plans for a 1am vote.

“It would be my intention to proceed to legislation that would address Daca, border security and related issues,” said Mitch McConnell, Republican leader in the Senate, referring to the status of immigrants who arrived illegally as children.

“It is also my intention to take up legislation on increased defence spending, disaster relief and other important matters.”

Funding for federal agencies ended at midnight on Friday.

Democrats have blocked a House-passed temporary funding bill to reopen the government's doors until February 16 as they push for protection for 700,000 undocumented immigrants who entered the US as children.