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Debt Deal Reached, Vote Expected Soon

Jeff Heimsath/KUT News
President Barack Obama at a fundraiser in Austin in May. The president announced Sunday night that Congressional leaders have reached a deal on the long debated debt ceiling issue.

President Barack Obama and congressional leaders reached an agreement Sunday night on the debt ceiling. Both chambers could vote on the deal Monday.  As NPR reports, those key votes could happen just in time to prevent the country from going into default:

...if all goes well, a bill increasing the debt ceiling by nearly a trillion dollars could await the president's signature Tuesday. That's the day the Treasury Department had said the nation's first-ever default could occur if Congress failed to act.

While the debt deal looks promising, CNN reports leaders have not given assurances that they have all of the necessary votes for passage.

According to information from the White House and a presentation for his Republican colleagues by House Speaker John Boehner, the proposed deal includes $2.4 trillion in deficit reduction over 10 years while authorizing an increase in the federal debt ceiling by a slightly smaller amount to allow the government to pay its debts through 2012. 

President Obama told reporters Sunday night the agreement will reduce the nation's deficit and avoid default, which he says would have a devastating effect on our economy.