ANKARA
The US Senate majority leader said Thursday that the upper chamber reached an agreement to lift the debt limit, averting the risk of a government default.
"We have reached an agreement to extend the debt ceiling through early December, and it's our hope that we can get this done as soon as today," said Chuck Schumer.
The move comes after Senate Minority Leader Mitch McConnell late Wednesday offered Democrats to pass a short-term debt limit extension to cover current spending levels into December.
The US had been facing the risk of not being able to generate funds to pay its obligations and could have defaulted on Oct. 18.
US Congress has increased or suspended the debt limit 78 times since 1960, according to the Treasury Department, with the most recent in 2019.
Treasury Secretary Janet Yellen repeatedly warned Congress in recent months that the government is on track to default on its national debt in October unless Washington increases the debt limit.
Senate Republicans blocked a bill Monday that would fund the government and now Congress has to approve an appropriations bill by midnight Thursday to avoid a government shutdown.
