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Obama, Congress reach a debt deal

Obama and Republicans seal deal to avert default, raise debt limit




As the debt crisis continues Senate Minority Leader, Republican Mitch McConnell of Kentucky, walks to the Senate floor for a vote on a solution crafted by Senate Majority Leader Harry Reid, D-Nev, not shown, at the Capitol in Washington, Sunday, July 31, 2011. McConnell is joined by Senate Republican Whip Jon Kyl of Ariz., left, and Sen. John Barrasso, R-Wyo., rear center. (AP Photo/J. Scott Applewhite)



David Espo, AP Special Correspondent, On Sunday July 31, 2011, 8:38 pm

WASHINGTON (AP) -- Racing the clock to avoid a government default, President Barack Obama and Republican congressional leaders reached historic agreement Sunday night on a compromise to permit vital U.S. borrowing by the Treasury in exchange for more than $2 trillion in long-term spending cuts.

Officials said Speaker John Boehner telephoned Obama at mid-evening to say the agreement had been struck.

No votes were expected in either house of Congress until Monday at the earliest, to give rank and file lawmakers to review the package.