Sen. Kay Bailey Hutchison (R-Texas) said she heard that there is now an agreement to avoid a government shutdown when she spoke on the Senate floor just before 9 p.m.

"I have heard the rumor that there is an agreement," said Hutchison. 

Hutchison was speaking on the floor to press a bill she has introduced to fund military pay in the event of a shutdown.  

If a deal to fund the government is not struck before midnight, the government will shut down.