Congress Passes Budget With Cuts in Medicaid and in Taxes.

The House and Senate broke a lengthy impasse over federal spending Thursday night, narrowly adopting a $2.56 trillion federal budget for 2006 that aims to trim the growth of Medicaid by $10 billion over five years, add $106 billion in tax cuts and clear the way for oil drilling in an Alaskan wildlife refuge.

Congress has failed to adopt a budget for two of the last three years, and Republican leaders hailed the votes as a victory. With the federal deficit at a record level, President Bush and Congressional Republicans - prodded by fiscal conservatives in their party - have promised to rein in government spending. Adopting a budget was a test of their ability to make good on that vow.

(4-29-05, The New York Times.)