WASHINGTON (MarketWatch) — Defying a White House veto threat, the Republican-led House of Representatives on Friday passed a bill that would keep the government open through mid-December and also eliminate funding for President Barack Obama’s health-care law.

With 10 more days remaining in the fiscal year and the prospect of a government shutdown looming without new funding, the bill sets the House on a collision course with the Democrat-led Senate and the White House.

The bill is part of a two-pronged strategy to attack Obama’s health law. Republicans are also aiming to cripple the law in return for agreeing to raise the U.S. debt ceiling, which Treasury Secretary Jack Lew says will be hit in mid-October.

House lawmakers approved the budget bill 230 to 189, mostly on a party-line vote. Two Democrats joined Republicans to approve it, while one Republican voted against it.

House Speaker John Boehner and other Republicans insist their party has no interest in a government shutdown or defaulting on the U.S. debt.

“A government shutdown is a political game in which everyone loses,” said Rep. Harold Rogers of Kentucky, who chairs the House Appropriations Committee.

Democrats shot back that the GOP was trying to force a shutdown. The Republican bill is a “terrible proposition” for American families, said House Minority Leader Nancy Pelosi, a California Democrat.

A resolution to the congressional impasse wasn’t clear on Friday, with time running short for a deal.

Democrats control the Senate with 54 seats, while Republicans have 46. Democrats could vote to strip the Obamacare language out of the bill and simply send the funding part back to the House for another vote.

Republicans suffered blame for the last government shutdown, in the mid-1990s, and the attempt to defund Obama’s health law has drawn fire from within the party.

Federal Reserve Chairman Ben Bernanke warned earlier this week that either a shutdown or a failure to raise the government’s borrowing limit “could have very serious consequences for the financial markets and the economy.” Read MarketWatch First Take: ‘Octaper’ depends on Congress.

Some Democrats don’t like the House bill for an extra reason: it keeps in place the $986 billion funding level permitted by the so-called budget sequester, the across-the-board spending cuts. Obama and Democrats have been trying to replace those cuts with other, targeted spending reductions.

Republicans have voted multiple times to defund, delay or outright repeal Obama’s health law, which they charge will slow down the economy.

Among other features, the law requires paying a penalty for not having health insurance. In July, the administration delayed for one year penalties for large employers who don’t provide workers with health insurance. But penalties for individuals are due to take effect next year.

Obama this week said the law has “started to bear real fruit” by slowing the growth of health-care costs.