“We have reached agreement to extend the debt ceiling through early December and it’s our hope that we can get this done as soon as today,” Schumer said in floor remarks.
At around 7:30 p.m. ET, the Senate is slated to vote to break a filibuster on the agreement to raise the debt ceiling, which needs 60 votes to succeed. If that vote succeeds, the Senate will vote on final passage, which only requires a simple majority.
If the Senate approves the debt limit extension, the House will next have to approve it before it can be sent to President Joe Biden for his signature.
“Republican and Democratic members and staff negotiated through the night in good faith,” said McConnell, a Republican from Kentucky, on Thursday following Schumer. “The Senate is moving toward the plan laid out yesterday to spare the American people a manufactured crisis.”
Both parties have made clear that the country must not default and that even coming close to it would likely bring catastrophic economic consequences.
Yet while the deal announced Thursday stands to avert immediate economic disaster, it does not resolve the underlying partisan stalemate over the issue. It merely delays the fight until another day.
That fundamental dispute remains, making it unclear what will happen in early December.
An aide familiar with negotiations told CNN that the deal Schumer announced on Thursday is to increase the debt ceiling by $480 billion, which is how much the Treasury Department told Congress it would need to get to December 3.
McConnell said on Thursday that the agreement provides Democrats with more time in the next two months to use reconciliation to raise the debt limit themselves.
He argued this resolves the “the majority’s excuse that they lacked time” to address it through the cumbersome budget process.
McConnell again repeated his other so-called compromise that Republicans would be open discussing a longer term bipartisan debt ceiling increase, if Democrats ditch their massive social safety net bill. That would be a non-starter for Democrats, however.
“If our colleagues would instead prefer a more traditional bipartisan discussion around basic governance, they can stop trying to ram through yet another reckless taxing and spending spree. … That would be the path toward that kind of discussion,” he said.
Treasury Secretary Janet Yellen had warned lawmakers that the federal government will likely run out of cash by October 18 unless Congress raises the debt ceiling.
But Congress may not even have that long, since the deadline is more of a best guess estimate than a set in stone deadline. That dynamic intensified pressure on both sides to reach a deal this week.
This story has been updated with additional developments Thursday.
CNN’s Manu Raju, Lauren Fox and Ted Barrett contributed.