Lawmakers reach deal to raise debt ceiling

Congressional leaders on Tuesday announced a deal that would avert a default of the nation's credit by allowing Democrats to raise the debt ceiling, just days before its Dec. 15 deadline.
1:47 | 12/08/21

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Transcript for Lawmakers reach deal to raise debt ceiling
TJ HOLMES: A sigh of relief coming out of Washington. Lawmakers reached a deal to raise the debt ceiling, keeping the US government from going into default. Our congressional correspondent Rachel Scott is on Capitol Hill with the very latest. Rachel, good morning. RACHEL SCOTT: TJ, good morning. This really is down to the wire. The Treasury secretary has warned the government will run out of cash to pay its bills in just one week if Congress does not act. And so with just days to go, Democrats and Republicans have reached a deal to raise the nation's debt limit. Now, think of this like maxing out the nation's credit card. Lawmakers have to agree to raise the balance, or else the government defaults. Now, all of this is focused on paying past debt, which predates President Biden's time in office. But Republicans are refusing, trying to protest the trillions of in new spending proposed by Democrats. Now, this deal does establish a workaround that allows Democrats to raise the debt limit without any Republican support. And this will certainly be welcome news ahead of the holidays. There would be catastrophic consequences if Congress does not act. Social Security checks for millions of Americans could be delayed. Troops would go unpaid. Leaders are confident that will all be avoided with this deal, TJ. TJ HOLMES: All right, Rachel. Another question out of Washington today is will he or won't he show up? A close Trump advisor could be held in contempt. RACHEL SCOTT: Yeah, and this is whiplash for lawmakers investigating the January 6 insurrection. Former Trump Chief of Staff Mark Meadows originally agreed to cooperate with the January 6 Select Committee. Now he is refusing, accusing them of not respecting the boundaries of executive privilege. Now, Meadows is expected to be here today for a deposition. If he is a no-show, the committee is threatening to hold him in criminal contempt of Congress, TJ. TJ HOLMES: All right. Rachel Scott for us on Capitol Hill. Thank you as always.

This transcript has been automatically generated and may not be 100% accurate.

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