Federal borrowing limit would be suspended, avoiding shutdown

Plan would raise caps on defense and non-defense spending

President Barack Obama and top lawmakers from both parties reached a tentative budget agreement that would avert a U.S. debt default and lower chances of a government shutdown, lessening years of political friction over fiscal policy in Washington.

The accord would extend U.S. borrowing authority until March 2017 -- preventing a default as soon as next week -- and include a two-year deal on spending levels. Details are to be worked out later, raising the prospect it will be punted to the next president. It was postedon the House website about midnight and will be discussed by lawmakers in both chambers during private meetings Tuesday morning.

"It is a good deal," said House Rules Committee Chairman Pete Sessions, a Texas Republican. He said the budget plan would raise spending caps for defense and non-defense programs for two years, though it would keep discretionary spending below 2008 levels.

The agreement wouldn't eliminate the chance of a government shutdown if lawmakers can't resolve differences over spending priorities and policy riders by Dec. 11, when current funding expires. Still, "it really dramatically lowers the chances for a shutdown," Representative Tom Cole, an Oklahoma Republican, told reporters.