Budget deal reached in United States

With a midnight deadline looming for a government closure, Democrats and Republicans made a hard-fought compromise which will keep federal agencies running for the next week, until a budget agreement can be formally enacted.

An agreement was reached on nearly $38 billion in spending cuts in a budget for the rest of the fiscal year, which ends September 30^th.

For Congress and the President, there are even tougher struggles still ahead. The Republicans, many elected on a promise to cut spending, have promised a 2012 budget which would cut programs deeply in an attempt to gain control over soaring deficits.

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