Senate leaders announced a deal this morning to reopen the government and raise the nation's borrowing limit, with the Treasury Department's deadline for lifting the debt ceiling just a day away, MarketWatch reported.
Speaking on the Senate floor, Majority Leader Harry Reid and Minority Leader Mitch McConnell outlined the agreement, struck after a competing House plan blew up late Tuesday night.
Significantly, Sen. Ted Cruz, the tea party-backed Texas Republican, said he wouldn't block a vote. That paves the way for a smooth process in the Senate, though Congress must now race to meet the Treasury's deadline. House Speaker John Boehner, meanwhile, urged fellow Republicans to support the deal.
The agreement must still win approval in the House, which looks more likely now with Boehner's support, before it can reach President Obama's desk. Votes in the Senate and House are expected to come as early as this evening, CNN reports.
The deal would finance the federal government until Jan. 15, keeping "sequester" spending levels, something McConnell said was a "top priority" for Republicans. The borrowing limit would be raised until Feb. 7.
Lawmakers would also be required to hammer out a long-term budget plan by Dec. 13. Reid said that committee would be led by Sen. Patty Murray, a Washington Democrat, and Rep. Paul Ryan, a Wisconsin Republican.
Reid called the deal a "historic bipartisan agreement."
Meanwhile, a survey conducted by Goldman Sachs Group Inc. shows that consumers have pared back spending in response to the government shutdown.
According to a research note, 40 percent of 1,000 customers surveyed say the partial government shutdown has been a negative factor, with 28 percent indicating that it affected their behavior a little and 12 percent considerably, MarketWatch reported. Those with household incomes under $35,000 were particularly impacted, with 47 percent indicating the shutdown has slowed their spending, compared with 32 percent of households earning more than $100,000. Other data also seems to support that assessment.