Barring a government shutdown, Health and Human Services Secretary Kathleen Sebelius will testify next week on her department's priorities. Her testimony comes just after House Republicans have offered a budget plan that would reform Medicare, which prompted Democrats to argue that Republicans are seeking to gut that program.

House committees next week also take up mortgage markets, sanctions against North Korea and higher gas prices. A list of featured committee hearings follows:

By 9:15 a.m. Friday, there was no sign of a budget agreement, and no announced plans in the House or Senate to consider a fiscal 2011 budget bill.

But there were some signs last night that Republicans and Democrats might yet find some solution. Senate Majority Leader Harry Reid (D-Nev.) said they "narrowed the issues significantly."

Sen. Charles Schumer (D-N.Y.) said the two sides have essentially agreed on how much more spending to cut, but that Republicans in particular are unwilling to admit this for fear of a backlash from the more conservative members of their caucus.

A spokesman for House Speaker John Boehner (R-Ohio) indicated on Friday morning that some elements of a deal have been worked out, but not every aspect.

"While nothing will be decided until everything is decided, the largest issue is still spending cuts," Michael Steel said. "The American people want to cut spending to help the private sector create jobs — and the Democrats that run Washington don't."

Senate Majority Leader Harry Reid (D-Nev.) came to the floor late Thursday night to report significant progress, but not a deal, in negotiations on the 2011 budget during a meeting between himself, President Obama and Speaker of the House John Boehner (R-Ohio.).

“We have narrowed the issues significantly, however, we have not yet reached an agreement," said Reid.

Reid added that he remained hopeful a government shutdown could be avoided, but said that he was not confident of that outcome.

"In 26 hours and 15 minutes this government closes if we don't work something out quickly," warned Reid. "We are going to work through the night to work out these issues.”

From the White House, Obama said that he "expected an answer" from congressional leaders in the morning.

"I'm not yet prepared to express wild optimism, but we're further along today than we were yesterday," Obama said in his second late-night visit to the White House briefing room in about 24 hours.

Prior to Reid’s words, Assistant Majority Leader Dick Durbin (D-Ill.) delivered a speech in which he once again blamed Republicans for poisoning the talks by demanding concessions on social policy as part of budget package. 

If the leaders do not reach a deal, the measure currently funding the government will expire at midnight on Friday and the government will shut down.

The Senate adjourned at 9:49 p.m. Thursday night and is set to return at 11 a.m. on Friday.

Sen. Charles Schumer said the House Speaker's lack of leadership has pushed the government to the brink of a shutdown.

Senate Majority Leader Harry Reid (D-Nev.) said late Thursday evening that he was no longer optimistic about the chances of avoiding a government shutdown.

"I am not really optimistic," said Reid at about 7:45 p.m. on the Senate floor. "I hope things are better when we get to the White House."

Reid was on his way to an 8 p.m. meeting with President Obama and Speaker of the House John Boehner (R-Ohio) to continue to try to craft a compromise that would fund the government for the remainder of fiscal 2011 and avert a shutdown when the current funding measure expires Friday night.

"We hope we are able to have some good fortune at the negotiation and work our way through those issues,” said Reid. 

The majority leader said social riders demanded by Republicans were still holding up negotiations.

"This is not a debate between Democrats and Republicans," Red said. "Its a debate between Republicans and Republicans. They cannot determine how many social issues they want. The funding issues are pretty well taken care of." 

Reid added that the last 24 hours have "not been kind to the American people" and concluded that Republicans’ unwillingness to budge on social riders including funding for abortion provider Planned Parenthood was "really bad for the American people."

Sen. Jim DeMint (R-S.C.) on Thursday accused Democrats of “choreographing” a government shutdown as a distraction from President Obama’s lack of leadership.

“The president needs a distraction, and this is a choreographed distraction to try to shift the blame from a president who has been AWOL from leadership and has very little political courage," the conservative senator charged.

DeMint, a favorite of the Tea Party movement, added that Democrats are trying to place blame on the Tea Party for the specter of a government shutdown when they themselves are at fault.

“They are coached to call us extreme and blame it on the Tea Party,” said DeMint.  “Americans are smarter than that.”

The current resolution funding the government expires on Friday. Both sides continue negotiations. 

"I am not really optimistic," said Reid at about 7:45 p.m. on the Senate floor. "I hope things are better when we get to the White House. "

Reid was on his way to an 8 p.m. meeting with President Obama and Speaker of the House John Boehner (R-Ohio) to continue to try to craft a compromise that would fund the government for the remainder of fiscal year 2011 and avert a shutdown when the current funding measure expires Friday night

"We hope we are able to have some good fortune at the negotiation and that work our way through those issues,” said Reid.

Reid said social riders demanded by Republicans were still holding-up negotiations.

"This is not a debate between Democrats and Republicans," said Red. "Its a debate between Republicans and Republicans.  They cannot determine how many social issues they want. The funding issues are pretty well taken care of." 

Reid added that the last 24-hours have "not been kind to the American people" and concluded that Republicans’ unwillingness to budge on social riders like funding for groups that provide abortions was  "really bad for the American people."

Sen. Bill Nelson (D-Fla.) said he is worried that if the government shuts down, the husband of wounded Rep. Gabrielle Giffords (D-Ariz.), Mark Kelly, will be unable to lead the space shuttle mission he is scheduled to command later this month.

“What about Gabby Gifford’s husband, who is supposed to go on a NASA mission?” asked Nelson. “Are they going to continue that preparation? Are they going to lay off the astronaut crew because they are not essential?”

“Is Captain Mark Kelly ... going to be able to command that mission to take the final components up to low orbit to connect those final components to the international space station?” asked Nelson.

Giffords was gravely wounded by a gunman in January. Her husband is scheduled to lead a NASA mission launching April 29.

In January 1986, Nelson spent six days orbiting Earth as a payload specialist aboard Space Shuttle Columbia and has become a leading advocate for NASA in Congress. 

“Ladies and gentleman, we are not even playing with fire, we are playing with super heated fire,”  concluded Nelson.

The House Rules Committee has postponed Thursday's planned markup of a rule for H.R. 3, the "No Taxpayer Funding for Abortion Act."

The committee has not announced when it might take up the bill. Approval of a rule Thursday was expected to lead to a vote as early as next week, but that schedule has likely been overtaken by the ongoing budget negotiations.