REPORTER: From park closures to furloughed federal workers, the impact of the government shutdown is evident across the U.S. In New York City, the Statue of Liberty was closed to visitors, where ticket holders were offered refunds or a boat ride around Liberty Island.
GAELLE MASSE, TOURIST FROM PARIS, FRANCE: "We're coming from Paris in France. So we're really disappointed."
REPORTER: In Washington, the shutdown closed museums, monuments and the National Zoo, and in this city where the U.S. government is the number one employer, many shops and restaurants offered deals to federal workers forced to stay home without pay.
JOEL PATTON, FEDERAL EMPLOYEE: "I've never had Sprinkles before and I heard all these good things about it so I wanted to give it a try. Why not do it because it's a freebie."
REPORTER: For the first time in 17 years - the U.S. government shut down after members of Congress failed to compromise on a funding bill. As a result, up to one million U.S. employees - deemed as "non-essential" - are expected to go without pay ... all victims of the political stalemate.
PRESIDENT BARACK OBAMA: "Republicans in the House of Representatives refused to fund the government unless we defunded or dismantled the Affordable Care Act. They've shut down the government over an ideological crusade to deny affordable health insurance to millions of Americans."
REPORTER: Tuesday morning, the Senate rejected the latest bill from the House aimed at putting a one-year delay on so-called "Obamacare." Speaker of the House John Boehner.
SPEAKER OF THE HOUSE JOHN BOEHNER: "I have to say I am disappointed in the actions of the United States Senate this morning in rejecting the bill passed by the House last night. The bill we passed in the House last night would have funded the government through December 15th and provide fairness to the American people under Obamacare."
REPORTER: But as Congress continues to battle, the shutdown could not stop a group of war veterans who walked through the barriers of the World War II monument to carry on with their visit.
Sprinkles Cupcakes is a Beverly Hills, California-based cupcake bakery chain established in 2005.