Debate begins today which could slash billions and stave off a shutdown.
Everyone has a budget problem, from Washington, to states across the nation.
"If we truly want to get our deficit under control, then we're going to have to cut excessive spending wherever it exists," said President Obama.
That means Social Security, Medicare, Medicaid and defense.
Senate Minority Leader Mitch McConnell said, "Refusing to agree to even try to live within your means is extreme."
The Republican deal the House begins debating today cuts four billion over the next two weeks.
Democrats call those cuts reckless.
New Jersey Representative Robert Andrews said, "We are handing oil companies at least 40 billion dollars in taxpayer giveaways, but we're laying off Head Start teachers?"
But it looks like Democrats in the Senate will go along, to prevent a Federal government shutdown Friday.
What they don't want to touch is health reform.
The President told governors they can bend his health law, but not break it.
Kansas Governor Sam Brownback said, "We're going to fight against it every bit of chance that we can. We don't think that is the right way for it to go."
President Obama warned states like Wisconsin against "vilifying" public employees to save money.