Mr Obama scrapped two stops on a planned four-country tour and left visits to two other countries up in the air. He told his counterparts in Malaysia and the Philippines he would not be able to meet them as planned and a White House official said the President was weighing up whether to attend diplomatic summits in Indonesia and Brunei.
Not only must the president deal with the budget impasse and its effects, but he faces an even bigger challenge in Congress which will put the US at risk of defaulting on its debts if it does not raise the public debt ceiling.
Treasury Secretary Jack Lew has said the US will exhaust its borrowing authority no later than October 17.
The fight between Mr Obama's Democrats and the Republicans over the government's borrowing power is rapidly merging with the stand-off over every day funding, which has forced the first government shutdown in 17 years and forced hundreds of thousands of federal employees to take unpaid leave.
The White House announcements yesterday about the Asia trip followed a fruitless day on Capitol Hill, with congressional Democrats and Republicans coming no closer to resolving their differences.
Mr Obama accused Republicans of taking the government hostage to sabotage his signature healthcare law, the most ambitious US social programme in five decades, passed three years ago.
The stand-off has raised new concerns about Congress's ability to perform its most basic duties and threatens to hamper a still fragile economic recovery.
Democratic Representative Louise Slaughter of New York said: "This is a mess."