Obama's plan to cut federal deficits over the next 12 years relies on tax increases for the wealthy as well as budget cuts. But he rejects Republican plans for reforming Medicare.
They held budget negotiators' feet to the fire, but the GOP House freshmen also proved to be flexible. Too, their voting record for their first 100 days in office is less monolithic than many had expected.
Most seem to think Speaker John Boehner did particularly well. He cut the FY 2011 budget a lot more than Democrats wanted, and he wrangled most of his rambunctious freshmen into order.
The budget deal marks the debut of an 87-member GOP freshman class committed to deep spending cuts. Speaker John Boehner defied his critics to rally his caucus and produce an agreement, without shutting down government.
Approaching a midnight deadline Friday night, House, Senate, and Obama administration came to agreement on a budget, avoiding a government shutdown. But tough political fights remain.
Federal shutdown: Democrats and Republicans made a last minute historic deal to cut the federal budget and avoid a federal shutdown.
Dow falls 29 points as gold soars to new record and oil prices reach highest level since 2008. Traders focus on impact on stocks of a potential government shutdown.
Media reports suggest that Republicans will not agree to a spending deal to avoid a government shutdown unless Planned Parenthood, which performs abortions, is defunded. But that stance could also be used as a GOP bargaining chip.
Nikkei opens initially lower after second major earthquake hits. Also on the radar: Portugal's $130 billion bailout? Madoff cloud over the Mets.