House and Senate negotiators are pushing to finalize a small-scale deal to set spending levels and replace sequester cuts for the next two years, a potential respite in the bitter budget wars consuming Congress. 
 
 The two congressional budget leaders — Rep. Paul Ryan (R-Wis.) and Sen. Patty Murray (D-Wash.) — are considering a plan that would give relief to some of the domestic and defense programs most burdened by the sequester through 2015 by replacing those cuts with budgetary savings in other areas, according to sources familiar with the negotiations. New revenue through fee increases — not tax hikes — is likely . 
 
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 reset In 90 secs: What's driving the day W.H.: It’s up to Congress to forge a budget deal 
 
 The emerging plan also would attempt to find a middle ground between overall federal spending levels sought by Ryan and Murray in their respective budget plans. Under one proposal still under consideration, overall discretionary spending levels would be set in the $1 trillion range for 2014, sources say. That’s an uptick from the $967 billion spending level under the Budget Control Act but lower than the $1.058 trillion level initially sought by Senate Democrats. 
 
 (PHOTOS: Paul Ryan through the years) 
 
 If the two sides agree to that approach, the increase in spending would be split about evenly between defense and nondefense spending, sources said. Roughly $80 billion of the sequester cuts would instead be shifted to other programs in the federal budget, but overall deficit reduction would remain unchanged. 
 
 On Monday evening, Ryan said little of the talks beyond: “We’re making progress. We’re talking.” 
 
 The target to reach a deal is Dec. 13 and a pact would reduce the chances of a government shutdown in 2014 — a midterm election year in which House Republicans are trying to keep the majority. 
 
 The details are still being hammered out — and there remains a distinct possibility that the effort will flounder, as so many budget deals have. Still, the fact that Ryan and Murray are this close to inking a deal is significant. It was just two months ago that Democrats and Republicans were so firmly entrenched on fiscal policy that Washington tumbled into the first government shutdown in 17 years. 
 
 (Also on POLITICO: Shutdown prevention: Back-room talks start) 
 
 The Ryan-Murray discussions are playing out as another potential shutdown looms next month. 
 
 Recognizing that the talks could always collapse, Speaker John Boehner (R-Ohio) is prepared to pass a bill next week that would fund the government past Jan. 15 at $967 billion if no deal is reached between Murray and Ryan. While Senate Democrats are adamantly opposed to setting spending at that low level, sources said Tuesday that Senate Majority Leader Harry Reid (D-Nev.) would be prepared to accept a fallback, stop-gap measure at $967 billion to avoid another shutdown. 
 
 But if Murray and Ryan can agree on a budget framework it would restore order to the dysfunctional congressional budget process since the two sides will have agreed to overall spending levels, possibly for the next two fiscal years. For that reason, House GOP leaders — burned by the previous shutdown fight — are eager to reach a deal now and take the prospects of another politically disastrous episode off the table in an election year. 
 
 House GOP insiders say a deal could be introduced as soon as late this week, with floor action next week. Boehner has been eager to adjourn for the year by Dec. 13. Senior GOP sources on Monday said the House would stick around past Dec. 13 if it were clear a deal would come together. 
 
 (WATCH: John Boehner wells up on '60 Minutes') 
 
 Sources said the two sides have been centering on a plan that would set 2014 spending levels around $990 billion, but on Monday aides said that level was not the exact target and that the level may exceed $1 trillion for the next two fiscal years. ||||| The ObamaCare rollout has handed Republicans a remarkable gift, and they are now ahead in the polls for which party should run Congress. The main obstacle to GOP political gains in 2014 would be another stupid, futile budget standoff—and Republicans are just the party to try. 
 
 This time the insurrection isn't coming from the Heritage Foundation-tea party caucus, but from defense hawks and appropriators who want to break the annual...
– The conservative editorial page of the Wall Street Journal sounds pretty hopeful that the troubles of ObamaCare will translate into solid GOP gains in next year's midterms. But the editors also see signs that Republicans are going to once again blow it with a "stupid, futile budget standoff." This time, it's defense hawks such as Rep. Buck McKeon who might break party ranks, thanks to Pentagon cuts mandated by current law. His intent is honorable, say the editors, but he and fellow hawks need to stand down for the sake of the party. "If 20 or so GOP Members vote with Nancy Pelosi to ditch the budget caps, Republicans can't pass a government funding bill before the current continuing resolution expires early next year," they write. "This could trigger another shutdown and pell-mell political retreat that makes the GOP again look like the gang that couldn't shoot straight." Republicans have to remain united—the lesson they should have learned from the last budget mess—and "Boehner must finally show enough leadership and toughness to keep his Members in line." Click for the full editorial. (Meanwhile, a Politico story suggests that a genuine deal is in the works to avoid a shutdown this time around.)