New Jersey Gov. Chris Christie signed an executive order to shut down the state government after he and the Democrat-led state legislature failed to come to a $34.7 billion budget agreement by midnight Friday.
Non-essential services like state parks and motor vehicle services are closed as the July 4 weekend begins, while state prisons, transit systems, law enforcement and the lottery remain running.
State Assembly Speaker Vincent Prieto blocked the lower house from voting on the budget bill because it would make alterations to the nonprofit Horizon Blue Cross Blue Shield. The bill did have support of Democratic Senate President Steve Sweeney.
Christie said "Prieto needlessly stalled the budget process," according to NJ.com.
The shutdown is the second in New Jersey's history; the first was in 2006.
Christie, who is very unpopular in his state, is calling for a special session on Saturday, says a report from CBS.