Last night House and Senate leaders reached a deal on a $1 trillion omnibus spending bill that will avert a government shutdown, if passed. Republicans agreed to drop travel restrictions to Cuba, but succeeded in stopping an administration rule on light bulb energy efficiency standards.

In separate negations, according to a senior Senate aide, Senate Majority Leader Harry Reid (D-NV) and GOP leaders are about $90 billion apart on a deal to reauthorize the payroll tax holiday that is set to expire at the end of the year. To save middle-class families from having to pay an extra $1,000 in taxes next year, Senate leaders are also working on a two-month back-stop measure.

Newly-minted GOP front runner Newt Gingrich came under withering attack at last night's debate as the rest of the Republican field concentrated their fire on the former House speaker. Rep. Michele Bachmann (R-MN) said that even if Gingrich was not technically a lobbyist, he [url=http://www.latimes.com/news/politics/la-pn-iowa-gop-debate-wrap-20111215,0,7743648.story]engaged in “influence peddlingâ€

A new Gallup poll reveals that Congress's approval rating has hit a new record low at 11 percent, with independents giving Congress a 7 percent approval rating. This month's disapproval rating of 86 percent is “the highest in Gallup history, beating the 84 percent-high recorded in August of this year.â€

House members decided to go on holiday break yesterday, leaving behind an impasse on the payroll tax holiday that is set to expire on Jan. 1. House Speaker John Boehner (R-OH) called on President Obama to call back the Senate in order to negotiate, but refused to hold an up-or-down vote on the bipartisan Senate compromise because he lacked support from his own caucus for his favored outcome.

More than 3 million people could lose unemployment benefits if Congress fails to reach a deal, as the benefits are tied up with the payroll tax cut. The maximum duration of benefits would be reduced and strict new requirements would be placed on people applying for unemployment benefits.

Unemployment rates dropped in 43 states in November from a month earlier, according to new date from the Labor Department, showing another glimmer of hope for the ailing economy. Just three states reported increases in their unemployment rates, while four were unchanged.

A federal judge sentenced white supremacist Kevin Harpham to 32 years in prison for the attempted bombing of a Martin Luther King Jr. Day parade in Spokane, Washington. Harpham was honorably discharged from the Army and had no criminal record, but the judge said Harpham had been influenced by “shrill and caustic and vitriolicâ€