Senate Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) huddled with their members on Capitol Hill and hammered out the final details of a deal that could gain congressional approval before the end of the day.
Senate leaders indicated they would take the reins and vote first as GOP senators such as Ted Cruz of Texas said he would not stand in the way of quick passage.
Speaker John Boehner (R-Ohio) is expected to put the Senate agreement — extending the debt ceiling to Feb. 7 and opening the government until Jan. 15 — on the floor Wednesday.
"The Speaker will bring that bill to the House floor," Rep. Kevin Brady (R-Texas) told Bloomberg television Wednesday morning.
The bill will allow President Obama to retain his power to use so-called extraordinary measures to preserve the ability of the government to pay its bills once it reaches the debt limit. The Treasury Department told Congress in May that the nation had hit the debt limit and it would be implementing thos measures.
The situation looked bleak on Tuesday night after House Republicans failed to garner enough votes for their latest plan, throwing the negotiations back to the Senate, where progress had been made earlier this week.
The pending deal also would create a budget conference designed to find replacement cuts for sequestration. The group of chosen members would have to report back by mid-December.
The credit rater Fitch said on Tuesday that the United States is on watch for a possible downgrade.
This posted was updated at 12:50 p.m.