The House of Representatives will vote on Saturday on a short-term budget.
Republicans and Democrats reached an agreement that would avert a federal government shutdown, yielding more spending cuts for Republicans while giving Democrats a key win.
A disagreement between Democrats and Republicans over the funding over spending in the 2011-2012 budget needed to be resolved by midnight to avoid the closure of all non-essential federal services. 800,000 federal employees face a temporary layoff, front line soldiers face a delay in being paid and museums and national parks are on the verge of closure.
The US Congress spent Friday on the brink as Democrats and Republicans were saying they didn’t want a shutdown but they also refused to give the space that would prevent one.
During the second term of Democrat president Bill Clinton in 1995-6, the US had to face a budget shutdown.