WASHINGTON- In a dramatic turn of events, hardline Republicans in the U.S. House of Representatives rejected their leader's proposal for a temporary government funding bill, setting the stage for a looming partial government shutdown beginning this Sunday.

With a vote of 232-198, the House defeated a 30-day government funding extension that included spending cuts and immigration restrictions – priorities for Republicans but with little hope of passing the Democratic-controlled Senate.

This unexpected setback has left the Republican-controlled House, with a slim margin of 221-212, without a clear strategy to avert a shutdown that could impact national parks, disrupt the pay of nearly 4 million federal workers, and hinder essential functions from financial oversight to scientific research after 12:01 a.m. ET on Sunday.

House Speaker Kevin McCarthy suggested that the chamber might consider passing a funding extension without the controversial conservative policies that had alienated Democrats, but he refrained from outlining the next steps. Additional votes are expected on Saturday.

The situation in the Senate remains uncertain as well. A bipartisan bill to fund the government until November 17 is on the Senate's agenda for Saturday, but procedural challenges might delay a final vote until Tuesday.

U.S. Treasury Secretary Janet Yellen voiced concerns about the potential economic consequences of a government shutdown, warning that it could disrupt programs for small businesses, children, and infrastructure improvements.

This prospective shutdown would mark the fourth in a decade and comes just four months after a similar standoff nearly led to a federal government default on its $31 trillion debt. Such recurring political brinkmanship has raised concerns on Wall Street, with Moody's ratings agency warning about potential damage to U.S. creditworthiness.

President Joe Biden emphasized the potential toll on the military, stating, "We can't be playing politics while our troops stand in the breach. It's an absolute dereliction of duty."

McCarthy had hoped that the border-related provisions in the Republican spending bill would garner support from holdout Republicans, but in the end, 21 hardline House Republicans joined Democrats in defeating the measure.

As the situation unfolds, it remains to be seen whether Congress will prioritize writing detailed spending bills covering the entire fiscal year over temporary extensions. The House has already passed four full-year bills, although they face a daunting path in the Senate.

While some Republicans are considering working with Democrats to pass a stopgap bill acceptable to the Senate and President Biden, tensions persist within the Republican party.

Former President Donald Trump has criticized Senate Republicans for cooperating with Democrats, and hardliners have threatened to remove McCarthy from his leadership role if he seeks Democratic support.

The ongoing internal divisions within the Republican party have now escalated into a high-stakes battle, raising concerns about the impending government shutdown and its potential repercussions.