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US Senate has passed a landmark bill aimed at ending the country's huge budget deficits within the next seven years.
It would cut government spending by more than 900 million dollars.
Health, education and hundreds of other programmes will be hit.
The bill was passed last week by the House of Representatives.
And congressional leaders now have to work out a compromise.
A BBC Washington correspondent says the stage is now set for a confrontation with the White House.
President Clinton has threatened to veto the Republican plans.
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