White House and Republicans reach deal to avoid government shutdown

POLITICO

After a long day of trading offers, the White House and House Republicans reached agreement Friday night on a budget framework that would cap 2011 appropriations near or below $1.050 trillion while cutting domestic and foreign aid by more than $40 billion from the rate of spending at the beginning of this Congress.

Behind the closed doors of special meeting of the Republican Conference, Speaker John Boehner presented the package to his party as at least an agreement in principle and said at one point “We have a deal.” He has yet to speak publicly but all signs indicate that the Senate will now feel confident enough to move ahead with a stop gap spending bill to avert—or at least shorten—any shutdown beginning at midnight.

Boehner made a final bid at getting a still lower top line directly to President Barack Obama, when Obama called him in the early evening. A second key variable is Pentagon spending, where Democrats had moved up to $514 billion –a $5.3 billion increase— but were also asking for an across-the-board government-wide percentage cut that would not exempt defense.

Aides on both sides were cautiously optimistic after so many twists-and-turns in the talks. And if a deal is reached, the plan called for House and Senate Appropriations Committee clerks to immediately begin writing a bill this weekend from the revised spending allocations.

Click to read more...