Republican and Democratic leaders of the US
Senate have struck a cross-party deal to end a
partial government shutdown and raise the US
debt limit.
Their bill must also pass the House, where a small
group of Republicans are expected to join Democrats to
send the bill to President Barack Obama.
The bill extends the federal borrowing limit until 7
February and funds the government to 15 January.
It comes just a day before the deadline to raise the
$16.7tn (£10.5tn) limit.
'Brink of disaster'
On the floor of the US Senate, Democratic leader Harry
Reid called the legislation "historic", saying it would
provide time for Congress to work toward a long-term
budget agreement.
The plan would create a conference committee of
Senate and House members tasked with drawing up a
longer-term budget deal.
"Our country came to the brink of disaster," Mr Reid
said. "This legislation ends a stand-off that ground the
work of Washington to a halt."
Republican Senate Minority Leader Mitch McConnell, Mr
Reid's negotiating partner, said he was "confident" the
government would reopen and avoid default under the
proposed bill.
The deal "is far less than many of us hoped for, quite
frankly, but far better than what some had fought," he
said.
"Now it's time for Republicans to unite behind other
crucial goals."
Politicians, bankers and economists warned of global
economic consequences unless an agreement to raise
the US government's borrowing limit were reached.
The US Treasury has been using what it has called
"extraordinary measures" to pay its bills since the
nation reached its current debt limit in May.
Those methods will be exhausted by 17 October, US
Treasury Secretary Jack Lew has said, leaving the US
unable to meet all of its debt and other fiscal
obligations if the limit is not raised.
It remains unclear whether the Senate bill can muster
enough votes in the Republican-led House to pass
before the 17 October deadline.
The House Democratic caucus may be joined by a
smaller number of more moderate Republicans,
analysts say.
'No winners here'
White House press secretary Jay Carney told reporters
US President Barack Obama hopes both chambers of
Congress "will move swiftly" to pass the Senate
agreement.
Asked if the bill, which contained few concessions to
Republicans, represented a win for the Obama
administration, Mr Carney said "there were no winners
here".
"The economy has suffered... The American people
have paid a price for this."
Hardline conservatives triggered the budget warfare 16
days ago, forcing the first government shutdown in 17
years by demanding that Mr Obama gut his signature
healthcare overhaul plan.
An estimated 700,000 of the 2.1 million-strong federal
workforce were initially told to stay home, having been
deemed "non-essential" staff.
Most national parks, museums, federal buildings and
services were closed, while pension and military
veterans' benefit cheques were delayed.
Although both parties have fared badly in opinion polls
during the political stand-off, Republicans have taken
the brunt of the blame from voters.
Senate have struck a cross-party deal to end a
partial government shutdown and raise the US
debt limit.
Their bill must also pass the House, where a small
group of Republicans are expected to join Democrats to
send the bill to President Barack Obama.
The bill extends the federal borrowing limit until 7
February and funds the government to 15 January.
It comes just a day before the deadline to raise the
$16.7tn (£10.5tn) limit.
'Brink of disaster'
On the floor of the US Senate, Democratic leader Harry
Reid called the legislation "historic", saying it would
provide time for Congress to work toward a long-term
budget agreement.
The plan would create a conference committee of
Senate and House members tasked with drawing up a
longer-term budget deal.
"Our country came to the brink of disaster," Mr Reid
said. "This legislation ends a stand-off that ground the
work of Washington to a halt."
Republican Senate Minority Leader Mitch McConnell, Mr
Reid's negotiating partner, said he was "confident" the
government would reopen and avoid default under the
proposed bill.
The deal "is far less than many of us hoped for, quite
frankly, but far better than what some had fought," he
said.
"Now it's time for Republicans to unite behind other
crucial goals."
Politicians, bankers and economists warned of global
economic consequences unless an agreement to raise
the US government's borrowing limit were reached.
The US Treasury has been using what it has called
"extraordinary measures" to pay its bills since the
nation reached its current debt limit in May.
Those methods will be exhausted by 17 October, US
Treasury Secretary Jack Lew has said, leaving the US
unable to meet all of its debt and other fiscal
obligations if the limit is not raised.
It remains unclear whether the Senate bill can muster
enough votes in the Republican-led House to pass
before the 17 October deadline.
The House Democratic caucus may be joined by a
smaller number of more moderate Republicans,
analysts say.
'No winners here'
White House press secretary Jay Carney told reporters
US President Barack Obama hopes both chambers of
Congress "will move swiftly" to pass the Senate
agreement.
Asked if the bill, which contained few concessions to
Republicans, represented a win for the Obama
administration, Mr Carney said "there were no winners
here".
"The economy has suffered... The American people
have paid a price for this."
Hardline conservatives triggered the budget warfare 16
days ago, forcing the first government shutdown in 17
years by demanding that Mr Obama gut his signature
healthcare overhaul plan.
An estimated 700,000 of the 2.1 million-strong federal
workforce were initially told to stay home, having been
deemed "non-essential" staff.
Most national parks, museums, federal buildings and
services were closed, while pension and military
veterans' benefit cheques were delayed.
Although both parties have fared badly in opinion polls
during the political stand-off, Republicans have taken
the brunt of the blame from voters.
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