US President Joe Biden on Sunday confirmed that a debt ceiling deal had been reached with the Republicans, NBC News reported.
Biden said the deal would avoid a "catastrophic default" from the federal government while keeping the economy fluid.
"It takes the threat of catastrophic default off the table," Biden said during a brief statement on the bipartisan agreement that would still need approval from both chambers of Congress.
The President expressed relief that the debit ceiling would not be in play for budget negotiations between Democrats and Republicans for two years.
"I strongly urge both chambers to pass that agreement," he said. "Let's keep moving forward."
Biden said he had just spoken to House Speaker Kevin McCarthy, who earlier Sunday had expressed confidence that the deal would pass Congress, despite early criticism from some lawmakers.
McCarthy said at a news conference that he expects that over 95% of House Republicans will support the bill, which he said he expected would be about 150 pages or less.
The House is currently planning on taking up the bill on Wednesday, according to NBC News.
“This is going to be transformational, where Congress is literally going to vote to spend less money this year than we spent last year,” McCarthy said.
Asked by reporters later on Sunday whether he’s confident the deal will get to his desk, Biden said: “Yes.”
Negotiators struck an agreement in principle on Saturday night to extend the debt ceiling. The text of the bill will be prepared by Republicans and reviewed by the Biden administration before it is finalized, House Minority Leader Hakeem Jeffries wrote in a letter to Democrats on Sunday.
A source familiar with the agreement said it includes a two-year appropriations deal and a two-year extension of the debt limit, effectively resolving the issue until after the 2024 election.