US Congress agrees last-minute budget deal

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US Congress agrees last-minute budget deal

President Obama said both sides made tough decisions and given ground on important issuesContinue reading the main story
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Republicans and Democrats have reached a deal on the US budget, an hour before a deadline that would have forced the government to close many services.

They have passed a stop-gap spending bill which will allow the government to keep running while the wider budget plan is finalised.

The parties have agreed to slash about $38bn (£23bn) from spending for the year until 30 September.

President Barack Obama said the cuts would be difficult but necessary.

"Some of the cuts we agreed to will be painful," he said.

"Programmes people rely on will be cut back. Needed infrastructure projects will be delayed. And I would not have made these cuts in better circumstances."

He said it was the "the biggest annual spending cut in history"
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