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The federal government will not shut down at midnight

Friday, December 16, 2011 - 4:27pm

In their latest bit of last day deal making, House and Senate Democrats and Republicans agreed to a budget that runs through next September.

The House vote came about ten hours before the deadline.

The nine month spending plan increases the Pentagon budget and health research by one percent, but cuts Homeland Security programs by five percent.

There's still a a big fight over the proposed payroll tax cut extension ahead.

Both parties want to keep that reduction in Social Security and Medicare taxes, but Republicans still link it to quick approval of an oil pipeline from Canada opposed by some environmentalists.

Republicans say the pipeline means more jobs and less foreign oil.

President Obama says inclusion of the pipeline in the payroll tax bill will result in a veto.

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