WASHINGTON — Congressional leaders have stepped up negotiations on how much the government should spend, signaling cautious optimism ahead of a nearing deadline to prevent a government shutdown.

“We’ve made real good, good progress” on the budget negotiations, Senate Majority Leader Chuck Schumer, D-N.Y., told reporters on Wednesday. “And we’re getting quite close. I’m hopeful that we can get a budget agreement soon.”

“And I’m hopeful that we could avoid a shutdown, given the progress — that is certainly not out of the question, as some people have said it would be,” he said.

Congress faces two shutdown deadlines in the coming weeks, with the first on Jan. 19 and the second on Feb. 2.

Schumer didn’t divulge details of the discussions, which are being held among leaders of the Democratic-controlled Senate and the GOP-led House, as well as key appropriators. They are trying to reach a “topline” deal on how much the government should spend as House Republicans insist on spending less than established under the bipartisan budget deal struck last May.

One source familiar with the talks, who wasn’t authorized to share details said they’re “moving along” and that it “appears we’ll reach agreement soon” on a dollar amount that contains less spending in fiscal year 2024 than the budget deal, “without any cuts to defense” spending.

Republicans are targeting cuts to a side pot of $69 billion in domestic non-military funding that was part of the budget deal, alongside a spending “cap” of $1.59 trillion. It remains to be seen whether the two parties can come to a new agreement as Democrats have lambasted the GOP for reneging on the earlier deal struck by former Speaker Kevin McCarthy and President Joe Biden.

“We have been working in earnest and in good faith with the Senate and the White House virtually every day through the holidays trying to come to an agreement. Negotiations are still ongoing,” Speaker Mike Johnson, R-La., told reporters on a trip with other Republicans to the border city of Eagle Pass, Texas.

“And let me tell you what our top two priorities are right now. In summary, we want to get the border closed and secured first, and we want to make sure that we reduce non-defense discretionary spending,” Johnson said.

One obstacle to a deal is the House Freedom Caucus, a group of ultraconservative lawmakers who want to wipe away the entire side agreement. A Freedom Caucus spokesperson said they still oppose any deal that adds to the $1.59 trillion level and pointed to the group’s Dec. 29 statement blasting the use of “disingenuous gimmicks” to secure separate funding for programs.

Rep. Matt Gaetz, R-Fla., was more explicit in a tweet: “If this border is not shut down, then we must shut down the government.”

Even if Congress reaches a deal on a spending level, it would be a first step to meeting the two-part deadline of Jan. 19 and Feb. 2 to keep the government funded. Congress would still have to hammer out how to allocate that money across departments and agencies.

The House and Senate return to session next week.