President Trump and congressional leaders on Wednesday agreed to increase the debt limit and fund the federal government until December, according to The New York Times.
The Times reported that Trump sided with top Democrats over the reluctance of their Republican counterparts.
Democrats announced the pact moments after the House passed a first installment of relief for areas recently impacted by Hurricane Harvey.
Trump then confirmed it aboard Air Force One while heading to a speaking event in North Dakota about tax reform.
“We essentially came to a deal, and I think the deal will be very good,” he told reporters. “We had a very, very cordial and professional meeting.”
“We all very much agree,” Trump added of attaching a debt ceiling increase and a stop-gap spending measure to a Harvey relief package.
“In the meeting, the President and Congressional leadership agreed to pass aid for Harvey, an extension of the debt limit, and a continuing resolution both to December 15, all together,” Senate Minority Leader Chuck Schumer (D-NY) and House Minority Leader Nancy Pelosi (D-CA) said in a joint statement.
“Both sides have every intention of avoiding default in December and look forward to working together on the many issues before us,” they added.
“As Democratic leaders, we also made it clear that we strongly believe the DREAM Act must come to the floor and pass as soon as possible and we will not rest until we get this done.”
Wednesday’s deal came after the House overwhelmingly approved about $8 billion in disaster aid in response to Harvey.
The aid package passed 419 to 3, with NBC News reporting the “no” votes as Reps. Thomas Massie (R-KY), Justin Amash (R-MI) and Andy Biggs (R-AZ).
Democrats earlier Wednesday had offered to support the three-month debt limit increase alongside Harvey relief funds.
Pelosi and Schumer backed the measure as it would give Democrats leverage later this year when other topics came up for negotiations between both political parties.
Speaker Paul Ryan (R-WI), however, called the proposal “unworkable,” adding “it could put it jeopardy the kind of hurricane response we need to have.”
“To play politics with the debt ceiling, like Schumer and Pelosi apparently are doing, I don’t think is a good idea,” he said.
Conservative Republicans have long argued that any debt limit increase must also include fiscal changes aimed at reducing spending.
The package would set up a cliff at the end of 2017 over both funding the government and the debt ceiling should it clear Congress.