Federal shutdown avoided, 2012 budget fight looms

WASHINGTON (AP) — A last-minute budget deal forged amid bluster and tough bargaining averted an embarrassing federal shutdown, cut billions in spending and provided the first major test of the divided government that voters ushered in five months ago.

Working late into Friday night, congressional and White House negotiators finally agreed on a plan to pay for government operations through the end of September while trimming $38.5 billion in spending.

Lawmakers then approved a measure to keep the government running through next Friday while the details of the new spending plan are written...