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House Speaker John Boehner confirmed Tuesday that members of Congress have agreed on a two-year budget deal.
The House will vote on the deal Wednesday.
Earlier on Tuesday, a White House official said Congress and the White House reached a deal two-year budget deal overnight that would lift mandatory sequestration cuts on both defense and domestic spending and raise the federal debt ceiling.
"It's a responsible agreement that is paid for in a balanced way by ensuring that hedge funds and private equity firms pay the taxes they owe and by cutting billions in wasteful spending," the official said in a statement.
The deal would also avert a fiscal standoff as the Republican-led U.S. House of Representatives prepares for new leadership.
Boehner is slated to retire Thursday and Congressman Paul Ryan, R-Wis., is expected to be elected as his successor.
Regarding the deal, Ryan said he is reserving judgment because he has not seen it.
"If you want to ask me what I think about this process, I think this process stinks," Ryan said. "Under new management we are not going to run the House this way."
—Reuters contributed to this report.