THE GUARDIAN: Obama and Democrats forced to accept $39bn package of cuts while Republicans gave way on health care for women
A shutdown of the US federal government scheduled to begin on Saturday was averted after the Democrats and Republicans reached agreement only hours before midnight on budget spending cuts.
The shutdown would have triggered major disruptions across the country and could have set back the country's fragile economic recovery. Hundreds of federal agencies would have closed down and about 800,000 federal staff faced suspension.
The deal came after days of negotiation between Obama and the Republican House Speaker, John Boehner, and the Democratic leader in the Senate Harry Reid. A deal had appeared to be tantalisingly close several times but was not finalised, until Friday night.
Boehner, an hour before midnight, told journalists in Congress: "I am pleased that Senator Reid and the White House have come to an agreement that will cut spending and keep government open."
It would have been the first federal government shutdown since 1995-96 when there was a stand-off between the Republicans and the Clinton White House. » | Ewen MacAskill | Saturday, April 09, 2011
