U.S. debt ceiling deal: Senate reaches agreement to avert crisis

The U.S. Senate dodged a debt disaster Thursday night, voting to extend the government's borrowing authority into December and temporarily avert an unprecedented federal default that experts warned would devastate the economy and harm millions of Americans.

The party-line Democratic vote of 50-48 in support of the bill to raise the government's debt ceiling by nearly a half-trillion dollars brought instant relief in Washington and far beyond. However, it provides only a reprieve. Assuming the House goes along, which it will, Republican and Democratic lawmakers will still have to tackle their deep differences on the issue once more before yearend.

That debate will take place as lawmakers also work to fund the federal government for the new fiscal year and as they keep up their bitter battling over President Joe Biden's top domestic priorities -- a bipartisan infrastructure plan with nearly $550 billion in new spending as well as a much more expansive, $3.5 trillion effort focused on health, safety net programs and the environment.

Easing the crisis at hand -- a disastrous default looming in just weeks -- the Republican Senate leader, Mitch McConnell of Kentucky, offered his support for allowing a short-term extension of the government's borrowing authority after leading solid GOP opposition to a longer extension. He acted as Biden and business leaders ramped up their concerns that a default would disrupt government payments to millions of Americans and throw the nation into recession.

The GOP concession to give up its blockade for now was not popular with some members of McConnell's Republican caucus, who complained that the nation's debt levels are unsustainable.