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Senate Democratic leader Chuck Schumer said an agreement being forged would increase funding for domestic programs like drug treatment and broadband infrastructure that Democrats want, as well as a military spending increase sought by Republicans.

Senate Majority Leader Mitch McConnell (R-Ky.) says he's optimistic.

"I think we're on the way to getting an agreement and on the way to getting an agreement very soon", McConnell told reporters Tuesday.

Mr. McConnell said lawmakers are on their way to getting a caps agreement "very soon", and Mr. Schumer said they're closer than they ever have been to a deal.

Spending levels would be set for fiscal 2018 and 2019 under the deal - and it would avert a second shutdown after a temporary spending measure expires on Thursday.

House Minority Leader Nancy Pelosi urged fellow Democrats to vote against the continuing resolution, criticizing Republicans for failing to increase funding for domestic priorities. Some congressional negotiators also wanted to include a hike in the debt limit, which the USA is expected to hit next month, though the exact parameters were still being negotiated when the deal was announced.

On Tuesday or Wednesday, McConnell intends for the Senate to vote on a bill passed by the House that funds the military through September and non-military through March 23.

If Senate leaders fail to finalize the deal within the next day, McConnell could amend the House resolution with a fallback option to keep federal agencies open.

The White House later clarified that it did not expect the budget deal to include specifics on immigration.

'The president isn't looking for this, but if the Democratic Party is going to continue to threaten a shutdown because they won't include responsible immigration reforms, including fixing MS-13 loopholes and other issues, ' Sanders said, 'then the president welcomes that fight'.

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Last time, agitation from progressive activists convinced Democrats to shut down the government over the Deferred Action for Children Arrivals program, which provides work permits and deportation protections for almost 700,000 people brought to the United States illegally as children.

"It speaks for itself", Schumer said.

"We want to fund defense, absolutely".

Aides say there is a window to lock in a budget deal that would open the door to several items in the chamber, ranging from a large disaster relief package, the community health center funding along with several other health care spending items and even a debt ceiling increase. "We're standing up and saying we must do both".

"These cuts-$2 billion in the current fiscal year and $43 billion overall through FY 2025-jeopardize access to care for millions of low-income Americans and lifesaving services to communities".

"Everyone understands that this will probably end up being a ping-pong situation" of legislation flip-flopping between the House and Senate, Rep. Carlos Curbelo of Florida said Monday night.

Then we wait to see what they put into the bill - and what the result of the intense behind the scenes negotiations are at the moment.

As of 7 p.m. Tuesday, the House had passed a stopgap bill to prevent the shutdown, but the measure faces changes in the Senate.

The Congressional Budget Office said recently that the Treasury Department would most likely run out of cash to pay the country's bills in the first half of March.

"But let me repeat, our goal is to get a two-year budget deal and to also get a deal on immigration, which we have laid out".

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