Margaret Talev

The U.S. House of Representatives doesn’t plan any votes on the federal budget tonight, meaning that Congress for now will fail to avert $600 billion in tax increases and spending cuts set to start at midnight.

Senate Minority Leader Mitch McConnell said lawmakers in Congress are “very, very close” to a deal to avert $600 billion in tax increases and spending cuts set to start at midnight.

The White House and congressional negotiators agreed to contours of a budget deal including tax cut extensions, with the remaining sticking point being how to avert automatic federal spending cuts, said an official familiar with the talks.

President Barack Obama made a last- minute appeal for compromise as three senators said the chances were greater than 50-50 for a deal to avert more than $600 billion in tax increases and spending cuts scheduled to take effect Jan. 1. In an interview broadcast Sunday on NBC’s “Meet the Press,” Obama warned of “an adverse reaction in the markets” if Congress doesn’t act.

President Obama, facing a budget stalemate with Republicans, urged leaders of both parties to assemble an interim bill to keep taxes from rising on middle- income Americans as they work on a more comprehensive plan.