With Debt Deal Done, U.S. Shutdown Set To End

The deal funds the government through Jan 15, raises the debt limit until Feb 7 and includes a provision in the deal that strengthens verification measures for people getting subsidies under Obamacare, the only concession that the Republicans were able to wrest.

It also sets a mid December deadline for completing budget negotiations between the House and the Senate for a long-term spending plan.

Democrat Senate Budget Committee Chairwoman Patty Murray and House Republican Budget Committee Chairman Paul Ryan plan to have a breakfast meeting to start the ball rolling on budget negotiations.

The deal also gives the Treasury Department the ability to borrow beyond the debt ceiling.

"Because of today's efforts, we will continue to honour all of our commitments - a core American value - and preserve the full faith and credit of the United States," Treasury Secretary Jack Lew said in a statement.

Welcoming the "important and necessary step" taken by the U.S .Congress, IMF Managing Director Christine Lagarde said: "Looking forward, it will be essential to reduce uncertainty surrounding the conduct of fiscal policy by raising the debt limit in a more durable manner.

"We also continue to encourage the U.S. to approve a budget for 2014 and replace the sequester with gradually phased-in measures that would not harm the recovery, and to adopt a balanced and comprehensive medium-term fiscal plan," she said.