WASHINGTON — Congressional leaders and the Obama administration are close to a crucial budget deal that would modestly increase domestic spending over the next two years and raise the federal borrowing limit. The accord would avert a potentially cataclysmic default on the government’s debt and dispense with perhaps the most divisive issue in Washington just days before Speaker John A. Boehner is expected to turn over his gavel to Representative Paul D. Ryan of Wisconsin.
While congressional aides cautioned that the deal was far from certain, and the Treasury Department declined to comment, officials briefed on the negotiations said the emerging accord would call for cuts in spending on Medicare and Social Security disability benefits.
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