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Excluded, aides said, was a collection of expiring tax breaks, largely for businesses buying equipment and other corporate expenses that had been sought by some lawmakers of both parties.

Participants said the Medicare payments to doctors would be paid for by reducing Medicare reimbursements to hospitals and by cutting about $5 billion from an $8 billion program under Obama’s health care overhaul aimed at battling obesity and smoking.

The unemployment benefits would be financed with a collection of savings that include government sales of parts of the broadcast airwaves to wireless companies and from boosting federal workers’ contributions to their pensions.

In private, some Democrats called it a victory, pointing to the payroll tax cut and unemployment benefit extensions while heading off the GOP’s earlier demand that the entire measure be financed with spending cuts and other savings. Others complained that the jobless benefit extensions were not generous enough.

Republicans claimed victory, too, noting their rejection of early Democratic efforts to pay for the payroll tax cut by boosting taxes on millionaires, and with jobless extensions that would be less than the 99 weeks under current law that Democrats wanted to renew.

Aides said the current 99-week maximum would fall gradually to 73 weeks by late summer in states with the worst unemployment, though a GOP aide said most states’ ceiling would be 63 weeks. Republicans had wanted to cut the maximum to 59 weeks.

Republicans abandoned provisions from a House-passed bill that would have required the jobless to pursue a high school equivalency degree to get benefits and let states require recipients to undergo drug testing.

States would be able to test applicants who lost their job because they failed a drug test or are seeking a job that requires one.

They also dropped other House-passed language forcing low-income people to have Social Security numbers to get government checks by claiming the children’s tax credit, a move that was aimed at illegal immigrants and caused a furor among many Hispanics.

Early Tuesday, Obama tried turning up the heat on Republicans to strike a deal.

“Just pass this middle-class tax cut. Pass the extension of unemployment insurance,” he said at a White House appearance. “Do it before it’s too late and I will sign it right away.”

Associated Press writers Jim Abrams, Andrew Taylor and Ricardo Alonso-Zaldivar contributed to this report.