Government officials are preparing for a possible shutdown if Congress fails to pass its current funding bill by midnight, according to published reports.

The Office of Management and Budget has begun preparations for a "lapse in appropriations," an OMB official told Reuters late Thursday.

U.S. Senator Rand Paul, R-Ky., has held up the bill, seeking a vote to restore budget caps. The agreement would boost federal spending by $300 billion over the next two years.

More from Investing

Why HP Enterprise's Stock Plunged After It Beat Earnings

Why HP Enterprise's Stock Plunged After It Beat Earnings

Has Wall Street Completely Lost Its Mind on General Electric?

Has Wall Street Completely Lost Its Mind on General Electric?

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

Did Trump Just Torpedo the Stock Market Again?

Did Trump Just Torpedo the Stock Market Again?

Venture Capital Funding Surges 49% as Tech Innovation Piques Investor Interest

Venture Capital Funding Surges 49% as Tech Innovation Piques Investor Interest