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Deal Reached to Raise Debt Ceiling, U.S. Avoids Default

President Obama announced Sunday evening a deal with Republican leaders to raise the debt ceiling, avoiding the first default in the nation's history.

The deal would cut $2 trillion in spending over the next decade, "the lowest level of domestic spending since Dwight Eisenhower was president," Obama said.

Senate Majority Leader Harry Reid said, "Sometimes it seems our two sides disagree on almost everything. But in the end, reasonable people were able to agree on this: The United States could not take the chance of defaulting on our debt, risking a United States financial collapse and a world-wide depression."

The deal does not have everything Republicans wanted, with House Speaker John Boehner saying it "isn't the greatest deal in the world, but it shows how much we've changed the terms of the debate in this town."

The full House and Senate did not vote on the deal right away -- those votes would come Monday at the earliest to give members a chance to read the fine print.

Obama lays out details of the agreement: 


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