US debt crisis: Congress passes deal

The US Congress passed a Bill to reopen the government and raise the federal debt limit, with hours to spare before the nation risked default.

The Democratic-controlled Senate's bipartisan compromise won approval by 81 votes to 18. The deal was then passed by 285-144 in the House of Representatives, whose Republican leadership begrudgingly agreed to support the measure.

It came hours before the deadline to raise the $16.7 trillion (£10.5 trillion) limit. The bill yanks the US back from the brink of a budgetary abyss by extending the treasury's borrowing authority until February 7. It also funds the government to January 15, reopening closed federal agencies and bringing hundreds of thousands of furloughed employees back to work.

The White House budget office said federal employees should return to work on Thursday.

The deal, however, offers only a temporary solution and does not resolve the budgetary issues that split Republicans and Democrats.

Shortly after Wednesday evening's Senate vote, President Barack Obama told reporters at the White House he would swiftly sign the bill into law. US lawmakers must "earn back the trust of the American people", he said adding "We've got to get out of the habit of governing by crisis."

"My hope and expectation is everybody has learned there's no reason why we can't work on the issues at hand, why we can't disagree between the parties without still being agreeable and make sure that we're not inflicting harm on the American people when we do have disagreements."

Senate Democratic Majority leader Harry Reid said, "Let's be honest, this is pain inflicted on a nation for no good reason and we cannot, cannot make the same mistake again."

The US Treasury has been using what it called "extraordinary measures" to pay its bills since the nation reached its current debt limit in May. It said those methods would be exhausted by October 17, leaving the US unable to meet all of its debt and other fiscal obligations. Politicians, bankers and economists had warned of dire global economic consequences unless an agreement to raise the US government's borrowing limit was reached.

BBC