The Treasury Department had warned that the country would start running short of cash on Monday, which would have sent shockwaves through the U.S. and global economies.
Debt Limit
The compromise package leaves neither Republicans nor Democrats fully pleased with the outcome. But the result, after weeks of hard-fought budget negotiations, shelves the volatile debt ceiling issue that risked upending the U.S. and global economy until 2025 after the next presidential election.
President Joe Biden and House Speaker Kevin McCarthy have been working the phones in an intense push to sell Congress on the 99-page bill that would suspend the nation's debt limit through 2025 to avoid a federal default while limiting government spending.
The Biden administration is racing to strike a deal with Republicans as the nation careens toward a potentially catastrophic debt default if the government fails to increase the borrowing limit, now at $31 trillion, to keep paying the nation’s bills.
The president's criticism comes as Congress faces an Oct 18 deadline to allow for more borrowing to keep the government operating after having accrued a total public debt of $28.4 trillion.
President Obama invites House Democrats to a meeting at the White House to discuss the budget crisis. Is the government shutdown nearing its end? Carol Marin and her guests have analysis. Watch web extra videos.
