Scenarios: What could happen in budget fight

WASHINGTON (Reuters) - President Barack Obama and leaders in the U.S. Congress are racing against a midnight Friday deadline to reach a deal on government spending for the rest of this fiscal year, which ends on September 30.

With only a few hours remaining, here are some scenarios on what could happen:

A DEAL IS REACHED

Obama, House of Representatives Speaker John Boehner, a Republican, and Senate Majority Leader Harry Reid, a Democrat, agree on spending reductions. They've been discussing cuts that would total around $38 billion for the remainder of the fiscal year.

Negotiations have been complicated by House Republicans insisting on some controversial policy changes, such as restrictions on funding for family planning and the Environmental Protection Agency's ability to regulate air pollution.

Once a deal is reached, Republican and Democratic leaders in the House and Senate would then have to make sure enough of their rank-and-file members will support it. If so, a bill will be drawn up and sent to the two chambers for a vote.

TIMING FOR CONGRESS TO APPROVE DEAL

Once a deal is set, it would take several days to write a bill, post it publicly and then vote on it so that President Barack Obama can sign it into law.

A DEAL AND STOPGAP FUNDING

If there is a deal, Congress would move quickly to pass a stopgap spending bill to keep the government running past midnight Friday and until the deal is enacted into law.

That action could come either late Friday or sometime on Saturday. House members have been notified they need to be available for votes in a rare Saturday session.

House Republicans already have passed a spending bill keeping the government open beyond Friday. But with $12 billion in spending cuts over the life of the one-week plan, Obama says he'll veto it.

Democrats are pushing for a stopgap bill with no policy restrictions or spending cuts.

FAILURE AND STOPGAP FUNDING

If a deal cannot be reached, the federal government would partially shut down on Saturday. Hundreds of thousands of government workers across the United States would be identified as either essential or nonessential. Nonessential workers would be furloughed while essential employees will continue working.

Some government services would be unaffected by the shutdown, including the military, border patrol, air traffic controllers and federal criminal investigators.

Fifteen years ago, when the last shutdown occurred, the government was partially closed for a record 21 days. Government employees were reimbursed for their lost wages.

The government shutdown would continue until negotiators either strike a deal or Congress decides to pass a temporary spending bill.

(Editing by Deborah Charles)