Senate leaders have reached agreement on a deal that staves off any default on federal payments into December.
"We've reached agreement to extend the debt ceiling through early December and it is our hope to get this done as soon as today," Senate Majority Leader Chuck Schumer said Thursday morning.
The plan would raise the statutory debt ceiling by $480 billion, according to a Senate aide. The amount would allow the Treasury to meet obligations through Dec. 3, the same day that the current short term government spending bill runs out.
The announced deal comes after weeks of partisan brinkmanship over how to raise the debt ceiling, which Treasury Secretary Janet Yellen has warned would be breached around Oct. 18 without legislative action.
U.S. stocks extended gains on the news, with the S&P 500 Index rising to a session high. It was up 1.4% as of 11:03 a.m. in New York.
While the agreement averts an immediate crisis, it means the partisan battle over the debt will be rejoined just as Congress will be confronting the deadline to keep the government open and Democrats are likely to be trying to get an infrastructure bill and a massive tax and spending plan through the House and Senate, with their slim majorities.
