No Government Shutdown: More Than $40 Billion in Domestic & Foreign Aid Cut

President Barack Obama and congressional leaders forged a last-minute agreement late Friday night on a deal to cut about $38 billion in spending and avert the first federal government shutdown in 15 years.

After a long day of trading offers heading toward a midnight deadline and literally in the eleventh hour, the White House and Speaker John Boehner reached agreement Friday night on a budget that would cap 2011 appropriations just under $1.050 trillion while cutting domestic and foreign aid by more than $40 billion from the rate of spending at the beginning of this Congress.

The shutdown would have been the first time a shutdown occurred during wartime.

With a deal close to resolution, the Senate quickly adopted a one week stop gap bill to prevent shutting down the government and allow time to process the final package.