US lawmakers reach deal to avert govt shutdown

The agreement included some $38.5 billion
dollars of extra spending cuts
© AFP/File Jewel Samad

AFP

WASHINGTON (AFP) - A dramatic 11th-hour deal slashing spending has staved off a US government shutdown, ending a rancorous budget row between President Barack Obama and his newly empowered Republican foes.

Party leaders clinched the agreement, including some $38.5 billion dollars of extra spending cuts, after intense bargaining, barely an hour before the federal government effectively ran out of money at midnight Friday.

The showdown was just the first bruising engagement in a string of likely clashes between Obama and Republicans boosted by a new crop of conservative Tea Party lawmakers, as the president fires up his 2012 reelection bid.