Obama announced the deal Sunday night in a televised statement from the White House briefing room. The deal raises the $14.3 trillion limit by as much as $2.4 trillion, to be done in two stages.
The Washington Post reports the deal calls for $1.2 trillion in cuts to federal agencies over the next decade, with a bipartisan committee scheduled to offer by November a proposal to further reduce the deficit.
“This compromise does make a serious down payment on the deficit reduction we need and gives each party a strong incentive to get a balanced plan done before the end of the year,” Obama said.
The deal was negotiated primarily between Vice President Joe Biden and Sen. Mitch McConnell (R-Ky.). The deal still needs to pass both the full House and Senate Monday.