Here on Capitol Hill this afternoon, there's no bipartisan agreement announced yet, but the prospects are looking good.
With government set to partially shut down Saturday, there is a rare show of cooperation in the Senate.
"We're confident and optimistic that we'll be able to resolve both on a bipartisan basis," said Republican Minority Leader Sen. Mitch McConnell of Kentucky.
It's the Democrats who tied the two issues into one refusing to fund government after tomorrow unless Republicans extend the payroll tax cut and unemployment benefits without pushing a controversial oil pipeline.
The White House has up countdown clocks.
"The president's priority here has not been to raise taxes," said Jay Carney, White House Spokesman. "The president's priority has been to lower taxes."
The deadline's tomorrow exactly 16 years since government did shut down for 3 weeks, damaging the career of then house speaker, Newt Gingrich.