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| Version 1 | Version 2 |
|---|---|
| US budget deal agreed in Congress | US budget deal agreed in Congress |
| (35 minutes later) | |
| A cross-party Congressional budget committee convened after an October government shutdown has reached an agreement to fund federal services. | A cross-party Congressional budget committee convened after an October government shutdown has reached an agreement to fund federal services. |
| The deal finances the government for two years and reduces the federal deficit by $23b (£14b). | The deal finances the government for two years and reduces the federal deficit by $23b (£14b). |
| It also avoids automatically triggering another government shutdown on 15 January. | It also avoids automatically triggering another government shutdown on 15 January. |
| It "cuts spending in a smarter way," Republican Congressman Paul Ryan said on Tuesday. | It "cuts spending in a smarter way," Republican Congressman Paul Ryan said on Tuesday. |
| 'Gridlock' | |
| The budget deal also offsets $63b in previously enacted automatic military and domestic spending cuts triggered in January when Democrats and Republicans failed to reach a budget compromise. | The budget deal also offsets $63b in previously enacted automatic military and domestic spending cuts triggered in January when Democrats and Republicans failed to reach a budget compromise. |
| Mr Ryan and Democratic Senator Patty Murray, the respective chairs of the House and Senate budget committees, were called on to reach a cross-party budget deal in the wake of October's partial government shutdown over federal spending. | |
| "We have broken through the partisanship and gridlock," Ms Murray said of the new deal. | "We have broken through the partisanship and gridlock," Ms Murray said of the new deal. |
| Mr Ryan said he was optimistic the new budget agreement could pass both sides of the highly politically divided Congress. | Mr Ryan said he was optimistic the new budget agreement could pass both sides of the highly politically divided Congress. |
| The measure is expected to come to a vote before the House recesses for several weeks beginning on Friday. | |
| According to the Congressional budget chairs, the new deal does not raise taxes but requires newly hired federal workers to make larger contributions to their pensions. | |
| A federal airport security fee adding $5 to the cost of a typical return flight is also included. | |
| Nature of compromise | |
| Following the announcement on Tuesday, Republican House Speaker John Boehner called the "modest" cross-party deal a "positive step forward". | |
| US President Barack Obama issued a written statement labelling the agreement "balanced" and "designed in a way that doesn't hurt our economy". | |
| "This agreement doesn't include everything I'd like - and I know many Republicans feel the same way. That's the nature of compromise," he said. | |
| But, "because it's the first budget that leaders of both parties have agreed to in a few years, the American people should not have to endure the pain of another government shutdown for the next two years," he added. | |
| Government officials say the deal, totalling an estimated $85b over the next decade, aims to carve $20b out of the nation's $17 trillion debt. |