Schumer: Agreement reached on short-term debt ceiling fix

WASHINGTON (AP) — Senate Majority Leader Chuck Schumer said Thursday an agreement has been reached with Republicans to extend the government’s borrowing authority into December, temporarily averting a debt crisis.

“We’ve reached agreement,” Schumer announced as he opened the Senate. “Our hope is to get this done as soon as today.”

Senate GOP leader Mitch McConnell had offered to accept a short-term extension on Wednesday, shortly before Republicans prepared to block legislation to suspend the debt limit until December of next year.

President Joe Biden and business leaders had ramped up their concerns that an unprecedented federal default would disrupt government payments to millions of people and throw the nation into recession.

The agreement sets the stage for a sequel of sorts in December, when Congress will again face pressing deadlines to fund the government and raise the debt limit before heading home for the holidays.

"Basically, I’m glad that Mitch McConnell finally saw the light,” said Bernie Sanders, the independent senator from Vermont. The Republicans “have finally done the right thing and at least we now have another couple months in order to get a permanent solution.”

Sen. Chris Murphy, D-Conn., added that, assuming final details in the emergency legislation are in order, “for the next three months, we’ll continue to make it clear that we are ready to continue to vote to pay our bills and Republicans aren’t.”

Unsurprisingly, McConnell portrayed it very differently.

“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,” he said.

Congress has just days to act before the Oct. 18 deadline when the Treasury...