World Bulletin / News Desk

A bicameral and bipartisan group of US lawmakers struck a critical deal on Tuesday that could potentially avoid a government shutdown on January 15.

Headed by Senator Patty Murray and Representative Paul Ryan, the deal will curb automatic spending cuts by approximately $63 billion, and will reduce the deficit by around $23 billion over two years. Additionally, federal spending will be set at $1 trillion in 2014, with a slight bump in 2015.

"It is an important step in helping heal some of the wounds here in Congress," said Murray at a conference to unveil the plan.

In a statement issued Tuesday, US President Barack Obama called the agreement a "good first step", adding, "I want to call on Members of Congress from both parties to take the next step and actually pass a budget based on this agreement so I can sign it into law and our economy can continue growing and creating jobs without more Washington headwinds."

It will now have to go to the full House and Senate for approval where it faces tough opposition from both sides.

Congress has not been able to pass a budget under normal procedure since 2009.