Wed 1 pm: Deal reached to avoid default and open government
WASHINGTON (AP) – Senate leaders have announced last-minute agreement to avert a threatened Treasury default and reopen the government after a partial, 16-day shutdown. Congress raced to pass the measure by day’s end.
The Dow Jones industrial average soared on the news that the threat of default was fading, flirting with a 200-point gain in morning trading.
One prominent tea party lawmaker, Sen. Ted Cruz of Texas, said he would oppose the plan, but not seek to delay its passage.
That was a key concession that signaled a strong possibility that both houses could act by day’s end. That, in turn, would allow President Barack Obama to sign the bill into law ahead of the Thursday deadline that Treasury Secretary Jacob Lew had set for action to raise the $16.7 trillion debt limit.
Officials said the proposal called for the Treasury to have authority to continue borrowing through Feb. 7, and the government would reopen through Jan. 15.
There was no official comment from the White House, although congressional officials said administration aides had been kept fully informed of the negotiations.
This is a developing story. For more on it, log on to www.tribtoday.com, or read Thursday’s Tribune Chronicle.