But such an agreement sets the stage for a bigger showdown in mid-October and the biggest issue is Obamacare.
With a government shutdown still possible the president went to Maryland to sell his controversial plan that kicks off on Tuesday.
"Knowing you can offer your family the security of health care, that's priceless. Now, you can do it for the cost of your cable bill, probably less than your cell phone bill, the President said.
Mr. Obama said insurance in Maryalnd will cost 80 dollars a month for single 25 year olds AND $164 for a family of 4.
The President said the plan would help the economy even if republicans don't want to admit it.
"And once its working really well i guarantee you they will not call it Obamacare," said Mr. Obama.
Republicans in the house still vow to kill it
"Again I think Obamacare is the biggest threat to our budget and to our culture," said Georgia Congressman Jack Kingston.
But many in the GOP would postpone the showdown.
"We are very confident we are not going to shut down the government," said Texas republican Congressman Pete Sessions.
And in a CNBC poll, 59% of the public said no to defunding Obamacare if that leads to a government shutdown
"It may mean that Americans say: you know what? It's the law. We might as well see if it works for a while. They're willing to give it a try it would appear from the data," said CNBC Senior Economics reporter Steve Liesman.
In just two weeks looms a bigger clash, over the debt ceiling
"Now the president says I'm not gonna negotiate. Well, I'm sorry but it just doesn't work that way," said House Speaker John Boehner.
Yes it does, said Mr. Obama.
He reiterated that he will not compromise on the credit rating of the U.S. Government.
And so far, there's been no compromise by the president to keep government running next week.
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