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US Senate approves budget bill to avert shutdown US Senate approves budget bill to avert shutdown
(about 1 hour later)
The US Senate has approved a bill to fund the US government through the remainder of its fiscal year.The US Senate has approved a bill to fund the US government through the remainder of its fiscal year.
The bill overcame a procedural obstacle on Monday and is expected to pass the chamber on Tuesday, before final passage in the House the following day.The bill overcame a procedural obstacle on Monday and is expected to pass the chamber on Tuesday, before final passage in the House the following day.
The bill retains $85bn (£56bn) in spending cuts this year that took affect on 1 March, but gives agencies new flexibility in implementing them. The bill retains $85bn (£56bn) in spending cuts this year that took effect on 1 March, but gives agencies new flexibility in implementing them.
It averts a government shutdown set for 27 March and funds it through October.It averts a government shutdown set for 27 March and funds it through October.
In particular, US senators were keen to guard programmes in their home states from potentially devastating budget cuts, analysts say.In particular, US senators were keen to guard programmes in their home states from potentially devastating budget cuts, analysts say.
Assuming President Barack Obama signs the bill, Republicans and Democrats in Congress will next have to forge an agreement on the US government's budget for its next fiscal year, which begins 1 October.Assuming President Barack Obama signs the bill, Republicans and Democrats in Congress will next have to forge an agreement on the US government's budget for its next fiscal year, which begins 1 October.
Republicans and Democrats have been locked in a series of fiscal battles for years. Much of the struggle has focused on how best to reduce the government's budget deficit, which has hovered around $1tn.Republicans and Democrats have been locked in a series of fiscal battles for years. Much of the struggle has focused on how best to reduce the government's budget deficit, which has hovered around $1tn.
Republicans demand dramatic spending cuts, mostly to domestic social programmes backed by Democrats, and adamantly oppose increasing taxes.Republicans demand dramatic spending cuts, mostly to domestic social programmes backed by Democrats, and adamantly oppose increasing taxes.
The Democrats led by President Obama prefer a mix of tax rises and spending reductions.The Democrats led by President Obama prefer a mix of tax rises and spending reductions.