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Mnuchin's comment means they've worked out a deal on what the overall spending levels will be for defense and nondefense programs, which are used by lawmakers to write government funding bills.

Without such a deal, the government would be set for deep, across-the-board spending cuts in January under a 2011 budget law that would kick back into effect.

The Trump administration and Democrats haven't agreed on everything yet.

Mnuchin cautioned on Thursday that they hadn't locked down an overall agreement, and that they needed to work out what level of spending offsets — other spending cuts or revenue raises — that would be included, and other "structural issues."