Washington, United States - Democrats and Republicans in the US Congress reached an agreement in principle on Wednesday to extend the federal budget by a few days and defer the threat of a government shutdown.

The US Capitol is seen in Washington, DC, on February 27, 2024. US President Joe Biden warned top congressional leaders Tuesday of the dire cost of failing to help Ukraine, as high-stakes talks at the White House ended without a deal. The leaders said they were optimistic they could keep the government's lights on -- but on Ukraine they remained deadlocked. (Photo by Mandel NGAN / AFP)

The agreement by Republican and Democratic leaders in the House and Senate would push back the start of a shutdown from Friday until March 8, giving policymakers some breathing room to try to reach a deal to fund the government.

"We are in agreement that Congress must work in a bipartisan manner to fund our government," they said in a statement.

They added that "a short-term continuing resolution to fund agencies through March 8 and the 22 will be necessary, and voted on by the House and Senate this week."

For several months, the United States has been deadlocked over the adoption of a finance bill for 2024.

The two parties have been entangled in partisan wrangling, and have only been able to pass a series of mini-bills to extend the US federal budget by a few days or months at a time.

The consequences of a government shutdown would be significant, and would include air traffic controllers going unpaid, some government agencies grinding to a halt, and the closure of America's much-beloved National Parks.

It must now be passed by the House of Representatives, the Senate, and then signed into law by President Joe Biden to postpone this threat.