Agreement close on Iraq funding bill

The Bush administration and congressional leaders closed in Tuesday on a compromise to pay for military operations in Iraq without setting a timeline for troop withdrawal.

It was a setback for Democrats who have vowed to challenge President Bush's war policies anew.

Several officials said the emerging compromise bill would cost about $120 billion, including several billion for Democratic domestic priorities such as disaster relief for Hurricane Katrina victims and farmers hurt by drought.

After a bruising veto struggle over war funding, congressional leaders in both political parties said they hoped the compromise would be cleared for Bush's signature by Friday.

"I'm optimistic that we will achieve the following: a full four-month funding bill without surrender dates. I think there's a good chance of that," said Senate Republican leader Mitch McConnell of Kentucky.