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.