* Passage of stopgap bill would allow talks to continue
* Democrats, Republicans still far apart on spending (Adds Senator Reid comment, paragraph 3)
By Richard Cowan
WASHINGTON, March 11 (Reuters) - The U.S. Congress is expected next week to extend funding to keep the federal government operating through April 8 with legislation that papers over deep divisions between Republicans and Democrats over the magnitude of spending cuts for the rest of this year.
The latest stopgap funding bill from Republicans who control the House of Representatives would cut ${esc.dollar}6 billion in spending over its three-week life, largely by reducing or ending 25 programs Democratic President Barack Obama does not want, House Appropriations Committee Chairman Harold Rogers said.
Senate Majority Leader Harry Reid praised the "agreement with Republicans," virtually assuring its passage.
Without a sixth temporary spending bill, Washington, starting on March 19, would have to begin shutting down nonessential services such as national parks, and could give layoff notices to workers who issue Social Security retirement checks.
The short-term measure is needed to give lawmakers more time to hammer out a spending plan to fund the government through Sept. 30, when the current fiscal year ends.
Obama, at a White House news conference, slammed Republicans for going too far on cuts for education and the country's infrastructure in a bill the House passed last month to fund the government through September. The Democratic-led Senate killed the House bill.
"We've got a war in Afghanistan going on, we've got a wide range of issues facing the country. ... The notion that we can't get resolved last year's budget in a sensible way with serious but prudent spending cuts, I think defies common sense," Obama said.
There is a yawning gap between Republicans' demand for about ${esc.dollar}60 billion in cuts from current spending over the next six months and Democrats' ${esc.dollar}10 billion offer, which they say would not cause job losses that a more drastic bill would.
The latest short-term spending measure is expected to be voted on in the House as early as on Tuesday. The Senate would then give its approval before week's end, aides said.
'NOT AN OPTION'
The stopgap measure would give Vice President Joe Biden more time to try to broker a deal with congressional leaders on funding the government through the rest of this fiscal year.
"A government shutdown is not an option, period," Rogers said. His bill would cut ${esc.dollar}3.5 billion through program reductions or terminations, such as unused U.S. Census funds, and ${esc.dollar}2.6 billion by killing lawmakers' pet projects, called earmarks, aimed at specific congressional districts.
The chaos over funding the federal government stems from the Democratic-led Congress' failure last year to pass a budget or any of the dozen regular spending bills implementing a budget.
Republicans, who took control of the House after last November's elections, are demanding deep cuts concentrated in domestic programs, which are a small share of the federal budget, to pare a projected ${esc.dollar}1.65 trillion budget deficit this year.
Their legislation also would make major policy changes, such as ending Obama's healthcare law, stopping Environmental Protection Agency attempts to regulate greenhouse gases blamed for global warming and undercutting new financial industry regulations.
Republicans hope to build on significant spending reductions this year, with many more next year.
While talks continue between the White House and congressional leaders, Democratic Representative Chris Van Hollen introduced legislation at Obama's request that would set up a quicker path for future spending cuts.
It would allow the president to propose eliminating what he considers unnecessary spending embedded in bills Congress sends to him. The House and Senate, on a fast-track schedule, would then have to vote on whether or not to "rescind" the money.
The idea is a variation of the "line-item veto" the U.S. Supreme Court declared unconstitutional in 1998. (Additional reporting by Caren Bohan and Alister Bull; Editing by Vicki Allen and Peter Cooney)
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