Congress leaders hope deal near on government shutdown

WASHINGTON (AP) — Shifting from confrontation to cooperation, congressional leaders expressed optimism today that agreement was near on extending this year's payroll tax cut, renewing unemployment benefits and averting a federal shutdown.

"We can extend payroll tax relief for American workers and create new jobs and keep the government running and, frankly, we can do it in a bipartisan way," House Speaker John Boehner, R-Ohio, told reporters, a turnabout from weeks of partisan sniping from both sides.

"No more show votes," Boehner said after praising earlier remarks by Senate Majority Leader Harry Reid, D-Nev., that lingering disagreements on a mammoth spending bill could be easily resolved. "It's just time to legislate."

Reid opened the Senate's morning session by saying he and the chamber's top Republican have held talks to resolve remaining disputes. With lawmakers itching to return home before the holidays, Reid said he and Senate Minority Leader Mitch McConnell, R-Ky., hope they can reach a deal "that would get us out of here in a reasonable time, in the next few days."

Standing just across the aisle, McConnell agreed with Reid — a stark contrast to recent days, when the two have fired sharp partisan volleys at each other.

"We're confident, optimistic we'll be able to resolve both on a bipartisan basis," said McConnell, referring to one bill that would renew the payroll tax cut and jobless benefits, and a separate spending measure that would keep federal agencies open.

President Barack Obama applied pressure of his own, saying Congress "should not and cannot" go home until it had resolved the issues.