US debt ceiling and budget deal ‘near final’; suspends ceiling for 2 years: Source

Steven Mnuchin, U.S. Treasury secretary, speaks during a press briefing at the White House in Washington, D.C., U.S., on Monday, July 15, 2019.

Al Drago | Bloomberg | Getty Images

The White House and congressional Democrats have moved close to a budget deal that would raise the U.S. debt ceiling for two years, a source close to the talks told CNBC.

An agreement to prevent the U.S. from hitting its borrowing limit and stop government funding from lapsing is “near final,” the person said. The remaining discussions relate to “technical language issues,” according to the source. 

Lawmakers have scrambled to strike a deal before lawmakers leave for their August recess. Treasury Secretary Steven Mnuchin warns the U.S. could run out of cash to pay its bills by September. In addition, if Congress cannot pass a funding bill by Sept. 30, the government will shut down. 

The developing deal would suspend the debt ceiling through July 31, 2021. It would permanently end the sequester, automatic across the board spending cuts that would have taken effect in January. 

The budget agreement would include parity between defense spending and domestic, non-defense outlays. It would also have $75 billion in spending offsets. 

This is breaking news. Please check back for updates.

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