US President Barack Obama announced a deal late Sunday with congressional leaders that will allow the federal debt limit to be raised before the Treasury runs out of money, dpa reported.
The 2.4-trillion-dollar increase must still by approved by the Senate and the House of Representatives before the Treasury Department's Tuesday deadline.
The current cap in the national debt is 14.3 trillion dollars. The hike in the debt limit would be enough to keep the government running past the November 2012 elections, which was a key Obama demand.
He said the agreement will "allow us to avoid default and end the crisis Washington imposed on the rest of America."
The deal was the result of last-minute talks between Obama's Democrats, who hold a majority in the Senate, and Republicans who control the lower house.
The two chambers appeared set to vote on Monday.