Congress and White House reach spending deal to fund US government

Congressional leaders and the White House announced a deal Tuesday to keep funding the US government through next March, avoiding a potential partisan shutdown fight ahead of November's election.

A deal was reached between Harry Reid and Republicans in Congress.

Harry Reid, the Senate's Democratic majority leader, said the deal on the so-called continuing resolution (CR) was reached between himself, Republican Speaker of the House John Boehner, and President Barack Obama, and will allow operations to continue through the first quarter of 2013.

"It will provide stability for the coming months," Mr Reid told reporters.

He said it was not possible to draft the document and vote on it by the time Congress goes on its August recess on Friday, "but we've got an agreement, we'll vote on it when we get back in September."

That's crucial because the current fiscal year ends on September 30, and Congress would be in session for barely three weeks between now and then, with most congressional attention focused on the election. 

The White House welcomed the deal, saying "we are encouraged that both sides have agreed to resolve this issue without delay.

"The president has made clear that it is essential that the legislation to fund the government adheres to the funding levels agreed to by both parties last year, and not include ideological or extraneous policy riders," press secretary Jay Carney said in a statement.

Mr Reid, who assured there were no such riders attached, said the deal was forged in a "spirit of compromise," a rare feat these days on Capitol Hill where partisan bickering has become the norm among lawmakers.

Mr Boehner acknowledged the deal as well, saying in a statement that "committee members and their staff will write legislation that can be passed by the House and Senate in September and sent to President Obama to be signed into law."

The deal heads off what could have been an explosive showdown over the budget in the run-up to the November 6 election that will see Republican Mitt Romney challenge President Obama for the White House.

If Congress passes the resolution, the funding would be consistent with the $1.047 trillion level agreed to in the 2011 Budget Control Act, above the $1.028 trillion which Republicans called for in House Budget Committee chairman Paul Ryan's proposal earlier this year.