Senate agree US debt bill

The US Senate has passed a bill to raise the debt ceiling and avoid a potential default. It will now be sent to the House of Representatives for a final vote. President Obama has said he will sign the bill "immediately" after the House vote.

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Report: Senate leaders agree deal to raise debt ceiling

Republican and Democratic leaders in the US Senate have struck a deal to raise the debt ceiling and avert a potential default, Republican senator Kelly Ayotte has told the Associated Press.

The measure still has to pass a deeply divided, Republican-controlled House of Representatives that failed twice on Tuesday to produce its own plan.



White House rejects 'partisan' House Republican plan

The White House has issued a stern response to the latest proposal on raising the debt ceiling from the House Republicans, accusing it of being partisan:

The latest proposal from House Republicans does just that in a partisan attempt to appease a small group of Tea Party Republicans who forced the government shutdown in the first place.

Democrats and Republicans in the Senate have been working in a bipartisan, good-faith effort to end the manufactured crises that have already harmed American families and business owners.

With only a couple days remaining until the United States exhausts its borrowing authority, it's time for the House to do the same.

– white house spokesperson

House Republicans 'working on rival debt ceiling plan'

Republicans in the House of Representatives are working on their own plan to end the fiscal stand off in the US and avert a possible default, NBC News reports.

House Speaker John Boehner in the House of Representatives in Washington DC Credit: REUTERS/Jason Reed

It comes as the Senate is putting the finishing touches to a bipartisan plan to raise the debt ceiling - the latest in a series that have foundered on Republican opposition in the House.

NBC News reports that House Republicans will vote on the plan - which would delay certain aspects of Obamacare - as early as today.

Q&A: What is the US debt ceiling?

'Tremendous progress' towards US debt limit

Harry Reid has been a key player in the negotiating of the debt limit in the Senate. Credit: Reuters

US Senate Majority Leader Harry Reid has said there has been "tremendous progress" towards the debt limit and a government funding deal.

Senate Republican Leader Mitch McConnell echoed this progress, but Reid made it clear they "are not there yet".

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