The Senate has reached a deal after 16 days of government shutdown. Twelve hours before the United States defaults, Senate Majority Leader Harry Reid, D-Nev., and Minority Leader Mitch McConnell, R-Ky., announced they had made a compromise to fund the federal government.
The deal would fund the government until Jan. 15 and raise the debt ceiling until Feb. 7. Reid called the result a “historic bipartisan agreement.”
Political insiders worried Sen. Ted Cruz, R-Texas, would filibuster the deal if given the chance, however, during the announcement Cruz said he had no intention of using any tactics to block the bill.
Once the bill passes the Senate, it still must be passed in the House, where Speaker John Boehner, R-Ohio, has had trouble corralling the Tea Party faction of his party.
If the deal does not pass, the government will default on its bills at midnight. At that point, the government would not be able to pay its bills and could send the global economy in a downward spiral.
Fitch Ratings, one of the three major credit rating agencies, warned it might downgrade the United States’ credit rating if it falls into default.