Democrats and Republican have agreed to move forward with a short-term extension of the debt limit in order to avoid a default.

The deal between Senate Minority Leader Mitch McConnell and Senate Majority Leader Chuck Schumer will increase the debt ceiling by $480billion, an aide knowledgeable on the negotiations told CNN.

‘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,’ Schumer said on the Senate floor on Thursday morning.

The plan requires votes from the House and Senate before going to President Joe Biden’s desk.

It postpones a long-term decision on the debt limit, which is the maximum amount that the federal government can borrow. Congress will need to agree on a debt solution by December to avoid the threat of a default.

McConnell claimed credit on Thursday for preventing a debt default. The Republican leader said that ‘the majority didn’t have a plan to prevent default, so we stepped in’.

He explained that Democrats were warned three months ago to use the budget reconciliation process to use a party line vote to raise the debt ceiling, but did not do so.

‘The pathway our Democratic colleagues have accepted will spare the American people any near-term crisis while definitively resolving the majority’s excuse that they lacked the time to address the debt limit through the 304 reconciliation process,’ McConnell said on the Senate floor immediately after the deal was announced.

‘Now there’ll be no question they’ll have plenty of time.’

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