Debt ceiling news 2014: The House of Representative passed a one-year extension to the United States' debt limit on Tuesday evening.
Sen. Majority Leader Harry M. Reid (D-NV) has already said he would pass the bill, although Sen. Ted Cruz (R-TX) may demand a 60-vote threshold on the deal. With U.S. President Barack Obama's signature, the nation would no longer face the threat of defaulting on its debt of $17.2 trillion within the next couple of months.
The deal passed by a narrow vote, 221 to 201, with just 28 Republicans supporting a "clean" extension of the country's borrowing power.
With a "clean" deal, Republicans were unable to attach any demands to the deal, such as improving veteran benefits or delaying the individual mandate on the Affordable Healthcare Act.
Here's what this "clean" deal means for Congress, and what's next.
The Next Step in the Debt Ceiling Deal
The agreement is a welcome surprise to investors, who now will not have to deal with Washington uncertainty until after the 2014 mid-term elections.
But this deal doesn't eliminate problems down the road.
Hours before the vote, the head of the Congressional Budget Office told the Senate Budget Committee that the "large and growing federal debt" increases the likelihood of "fiscal crisis."
"The large budget deficits recorded in recent years have substantially increased federal debt, and the amount of debt relative to the size of the economy is now very high by historical standards," Douglas W. Elmendorf testified.
And although Janet Yellen signaled no increase in interest rates is pending, the nation will face incredible service costs once rates do rise in the next few years. Should the U.S. debt hit $20 trillion in the next few years, the nation would pay $1 trillion each year in interest at a 5% rate.
So why did Republicans agree to this clean debt ceiling deal?