Senate Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) were working on a deal to raise the debt limit and re-open the government with the goal of bringing that measure to the full chamber Wednesday, Reuters reports.
Richard Cowan writes such a deal would extend the U.S.’ borrowing authority to Feb. 7 and fund government agencies through Jan. 15.
Fitch Ratings has warned it could downgrade the country’s sovereign credit rating from AAA because of the dispute over the federal debt ceiling, according to the report.
According to Bloomberg, without a debt limit extension, the U.S. would operate on $30 billion of cash reserves and incoming revenue starting Thursday.
The U.S. would also start missing promised payments between Oct. 22 and Oct. 31, Bloomberg reports, citing Congressional Budget Office estimates.