Congressional negotiators reached agreement Thursday on a compromise spending bill to avert a weekend federal shutdown. They also worked toward a deal renewing the payroll tax cut and unemployment benefits for another year but prepared a shorter version as a fallback.
Senate Majority Leader Harry Reid, D-Nev., told reporters he was still optimistic that bipartisan talks on yearlong extensions of the Social Security payroll tax cut and unemployment coverage would succeed. But as a “Plan B,” he said, they were working on a two-month extension as well, which would also prevent cuts in Medicare reimbursements for doctors during that period.
“We’re still working on the long-term” bill, Reid told reporters as he exited the Capitol after a day of talks over both the payroll tax and spending measures. As for the two-month version, he said, “We’ll only do that if what we’re working on doesn’t work out.”
Reid’s remarks put a slight damper on a day on which for the first time, Democratic and Republican leaders expressed optimism at prospects for swift compromise on their payroll tax standoff and a spending battle that had threatened to shutter federal agencies beginning at midnight Friday.