The White House on Friday confirmed a report that President Barack Obama's new budget predicts a $1.3 trillion deficit for the ongoing fiscal year. The deficit would drop to $901 billion next year under the administration's tax and spending policies.

Congressional Democrats are urging a modest six-week cut in the number of weeks that unemployed workers can receive jobless benefits as House-Senate talks on a payroll tax cut slowly inch along.

Negotiators on Capitol Hill agreed Wednesday to try to extend a payroll tax cut worth about $1,000 this year for a typical worker through the end of the year.

Once pension and health benefits are factored in, the average federal worker reaps 16 percent more in total compensation than do private sector workers.

Republicans would cut federal employee benefits. President Barack Obama would raise fees for airline passengers and eliminate Saturday mail delivery. Democrats in Congress would charge employers higher premiums for federal pension guarantees.

After weeks of bickering and doubt, Congress delivered a last-minute holiday tax cut extension to 160 million workers Friday along with further unemployment benefits for millions laid off in the nation's fierce recession and weak economic recovery. It was a convincing victory for President Barack Obama, a humbling retreat for...

Their isolation complete, House Republicans on Thursday caved to demands by President Barack Obama, congressional Democrats and fellow Republicans for a short-term renewal of payroll tax cuts for all workers.

Seeking to break a stalemate that is threatening 160 million workers with Jan. 1 tax increases, President Barack Obama urged the top leaders of Congress Wednesday to first pass a short-term extension while promising to work with lawmakers on a full-year measure.