Senate Majority Leader Chuck Schumer announced that lawmakers have reached a deal to raise the debt ceiling.
"I have some good news," Schumer said from the Senate floor. "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."
According to CNBC, the deal will raise the debt ceiling by $480 billion, which would be enough money to pay the nation's bills until December 3.
The Senate is expected to take up the bill on Thursday (October 7). If the bill passes the Senate, it will then move the House before heading to President Joe Biden's desk for his signature.
"The Senate is moving toward the plan I laid out last night to spare the American people from an unprecedented crisis," Senate Minority Leader Mitch McConnell said on the Senate floor.
He said that Republicans will not block the measure but added that Democrats will have to work alone to raise the debt ceiling again.
"We will also allow Democrats to use normal procedures to pass an emergency debt limit extension at a fixed dollar amount to cover current spending levels into December," McConnell said. "This will moot Democrats' excuses about the time crunch they created and give the unified Democratic government more than enough time to pass standalone debt limit legislation through reconciliation."
The short-term deal will only give lawmakers a brief reprieve from the battle over the debt ceiling. If Congress fails to act before December 3, the U.S. will default on its debt for the first time in history. That would send shockwaves through the financial markets and likely cause a global recession.