Congressional Leaders Reach Deal To Hike Debt Limit

Congressional leaders reached an elaborate deal Tuesday that will allow Democrats to lift the nation’s debt limit without any votes from Republicans.

The deal likely averts another last-minute rush to avoid a federal default. Hours later, the House passed legislation overwhelmingly along party lines that kicked off a multi-step process.

Congress approved a $480 billion increase in the nation’s debt limit in October. That’s enough for the Treasury to finance the government’s operations through Dec. 15, according to Treasury Secretary Janet Yellen's projection.

But Republicans have warned they won't vote for any future debt ceiling increase to ensure the federal government can meet its financial obligations, and instead, the politically unpopular measure would have to be passed entirely by the Democratic majority in both chambers of Congress.