Congress strikes deal to avert government shutdown

WASHINGTON: US congressional leaders struck Thursday a $1 trillion funding deal to avert a pre-Christmas government shutdown, as talks between Democrats and Republicans for once defused a bitter confrontation.Negotiators were also considering an extension of a payroll tax cut demanded by President Barack Obama to put an extra $1,500 in the pockets of working Americans next year and stimulate the sluggish economy.Leaders from the Republican-controlled House of Representatives and the Democratic-run Senate agreed to allow a vote by Friday on a bill that would fund the US government through fiscal year 2012, congressional sources said.If the bill does not pass Friday, the vast machinery of the US government would grind to a halt, as federally-funded Christmas events, public buildings and government agencies ran out of money.'I am hopeful that the House and Senate can pass this bill tomorrow to prevent a government shutdown, fund critical programs and services for the American people and cut spending to help put the nation s finances on a more sustainable path,' House Appropriations Committee Chairman Hal Rogers said.Talks took place throughout the day as lawmakers sought to break the impasse driven by pre-positioning for Democratic President Barack Obama s 2012 reelection bid and deep antipathy between the parties.The root of the stalemate lay in brinkmanship by both parties over a push by Obama for a tax cut for 160 million workers and a Republican bid to force him to reconsider delaying a decision on a Canada-US pipeline plan.Republicans had accused Obama of ordering Democrats to stall the funding bill until the payroll tax issue was agreed.