Both sides cautioned late Tuesday that the agreement was not final and still could be altered. If completed, final congressional approval was possible by Friday, which would be an election-year victory for President Barack Obama, who made the payroll tax cut a keystone of his largely ignored jobs creation plan in September.

House Republicans emerging from a closed-door meeting said reaction to the package was generally positive, with some saying it reflected a desire to avoid spending months debating an issue that cost them dearly last year. In December, the House GOP initially opposed a two-month extension of the tax cut and other benefits that were about to lapse, only to retreat under pressure from outside party leaders and conservatives.

"We've got to move onto another issue," said Rep. Dennis Ross, R-Fla. "I think that's what the mood is."