Lawmakers have a deal on a short-term debt ceiling increase, Senate Majority Leader Schumer says

Senate Minority Leader Charles Schumer (D-NY) (L) and Senate Majority Leader Mitch McConnell (R-KY) walk side-by-side to the Senate Chamber at the U.S. Capitol February 7, 2018 in Washington, DC.

Chip Somodevilla | Getty Images

Senate Majority Leader Chuck Schumer announced Thursday morning that lawmakers have reached a deal on a short-term debt ceiling increase after hours of discussion with GOP leader Mitch McConnell.

“I have some good news,” Schumer, D-N.Y., said from the Senate floor. “We have reached agreement to extend the debt ceiling through early December, and it’s our hope that we can get this done as soon as today.”

The announcement from the Senate’s top Democrat came less than a day after Minority Leader McConnell, R-Ky., offered a stopgap solution to avert a looming government default and subsequent economic downturn. The Senate will likely vote on the Schumer-McConnell proposal later Thursday.

Republicans and Democrats had been at odds for weeks over how to raise or suspend the U.S. borrowing limit by Oct. 18, when the Treasury Department estimates the country will exhaust its emergency measures to pay the nation’s bills.

The U.S. has never defaulted on its debt, and most economists predict that doing so would lead to an economic recession and violent swings in financial markets.

Republicans, frustrated by what they see as reckless spending initiatives from the Biden administration, had until Wednesday threatened to filibuster any debt-ceiling legislation brought to the Senate under normal procedures.

The GOP wants Democrats to pass a more-permanent solution via budget reconciliation, which would save Republicans from voting to increase the nation’s borrowing limit.

This is breaking news. Please check back for updates.

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