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Negotiators Reach Agreement to Avoid Government Shutdown

Alex Wong/Getty Images(WASHINGTON) -- Members of Congress reached an agreement Thursday that could stave off the threat of government shutdown.

Senate leader Harry Reid, D-Nev., said Thursday that Democrats are preparing a proposal for a two-month extension of the payroll tax cut as well as an extension of unemployment benefits and the "doc fix."

Meanwhile, a key source said Democrats would sign a megabus conference report Thursday so that it can be filed in the House.  The $1 trillion spending plan could be approved by the House Friday -- and then by the Senate later that same day -- to avert a threatened shutdown Friday night.

Copyright 2011 ABC News Radio

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