WASHINGTON (AP) – Senate leaders reached last-minute agreement today to avert a threatened Treasury default and reopen the government after a partial, 16-day shutdown, according to a Republican senator who also said congressional leaders would push for passage as soon as possible.
The Dow Jones industrial average soared on the news that the threat of default was easing, rising roughly 200 points by late morning.
“I understand they’ve come to an agreement but I’m going to let the leader announce that,” senator Kelly Ayotte, Republican, New Hampshire, said as she walked into a meeting of Senate Republicans called to review details of the emerging deal struck by Senate majority leader Harry Reid and GOP leader Mitch McConnell.
Officials said the proposal called for the Treasury to have authority to continue borrowing through February 7, and the government would reopen through January 15.
There was no official comment from the White House, although congressional officials said administration aides had been kept fully informed of the negotiations.
While the emerging deal could well meet resistance from conservatives in the Republican-controlled House, the Democratic leader, representative Nancy Pelosi of California, has signalled she will support the plan and her rank and file is expected to vote for it in overwhelming numbers.
