Updated 04/09/2011 11:09 AM
Government Shutdown Averted With "Painful" Cuts, Obama Says
To view our videos, you need to
enable JavaScript. Learn how.
install Adobe Flash 9 or above. Install now.
Then come back here and refresh the page.
President Obama is praising lawmakers for reaching a budget agreement late Friday night, but says that the cuts will likely hit Americans hard.
Congressional leaders reached an eleventh-hour agreement with the White House Friday night to avoid a federal government shutdown that would have shuttered federal offices and national parks, including the Statue of Liberty.
"Some of the cuts we agreed to will be painful," the president said Saturday in his weekly address. "Programs people rely on will be cut back. Needed infrastructure projects will be delayed, and I would not have made these cuts in better circumstances. But we also prevented this important debate from being overtaken by politics and unrelated disagreements on social issues. We fought to keep government spending down because it really will in fact help create a better environment for job creators in our country."
Democrats say they were able to sidetrack some Republican "riders" that had been holding up an agreement, including plans to deny federal funds for Planned Parenthood.
The deal averted the closures by cutting tens of billions of dollars in federal spending. Congressional leaders approved a stopgap measure to keep the government solvent over the next few days while the full legislation is passed.
The agreement reportedly calls for $39 billion in spending cuts, with an additional $500 billion in cuts over the next decade.
In New York City Friday, dozens of travelers frantically tried to get their passports at the State Department office in Lower Manhattan ahead of a possible shutdown.
Some were lucky to get their passport, while others appeared to be in for the long haul.
"I've been waiting for an hour and a half, still have an hour, and hoping to get my passport today," said one New Yorker.
"I was supposed to come in and pick it up next week to go to Norway and if there's a shutdown my vacation plans are down the toilet," said another.
Earlier Friday, House and Senate leaders offered dramatically different reasons for the budget gridlock. Senator Harry Reid said the two parties agreed to cut $38 billion from the budget and settled other contentious issues involving the environment, health care, and the Internet.
Reid says Democrats were holding fast against a GOP plan to stop the flow of federal money to Planned Parenthood.
"They can keep their word and consider cutting the federal deficit or they can shut down America's government over women's access to health care. If that sounds ridiculous, that's because it is ridiculous," Reid said.
While visiting a health center in Harlem Friday, Health and Human Services Secretary Kathleen Sebelius talked about Republicans' concerns that federal money is designated for abortions.
She said slashing funding for women's health centers will have a negative effect.
"Cutting that funding would actually increase the number of unintended pregnancies and increase the number of abortions," said Sebelius. "People who say they're having this battle about abortion are not actually looking at what the statistics indicate. Federal funds have never supported abortion, do not support abortion, will not support abortion."
The House passed a short-term spending bill Thursday, although the Senate and White House took issue with the amount of cuts and called it a gimmick.