Sep 24, 2011, 9:21 p.m.

Congress delays budget fight until Monday

WASHINGTON (Reuters) - The Congress set the stage for another last-minute budget showdown as lawmakers delayed action on a broad spending bill until Monday, shortly before disaster relief funds will run out completely. This time, the brinkmanship threatens to disrupt assistance to victims of floods, wildfires and other natural disasters in one of the most extreme years for weather in U.S. history.

Senator McCain offers postal bill, mirrors House

WASHINGTON (Reuters) - Senator John McCain unveiled a bill on Friday to revamp the U.S. Postal Service, including an end to Saturday mail delivery, the latest of a series of legislative proposals to shore up the financially shaky mail service. The proposal, which would also create advisory groups to reduce the number of post offices and cut costs, is based on Republican Representative Darrell Issa's bill in the House of Representatives, a McCain spokesman said.

Obama to loosen education law, cites flaws

WASHINGTON (Reuters) - President Barack Obama on Friday announced steps to roll back key provisions of "No Child Left Behind," calling the decade-old U.S. education law admirable but flawed. The law, signed by President George W. Bush in 2002, was intended to hold schools and states accountable for students' performance, as measured by annual testing.

U.S. sees China fallout from Taiwan arms, no breach

WASHINGTON (Reuters) - The United States expects some fraying of relations with China over its $5.3 billion plan to upgrade Taiwan's F-16 fleet but not as "shrill" a reaction as if it had met the request for new fighter jets, the top U.S. military commander in the region told Reuters on Friday. China has condemned the planned retrofit of Taiwan's 145 F-16 A/B fighters sold in 1992. But it has not yet announced any retaliatory steps.

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