Debt ceiling deal reached by Democrats and Republicans to avoid default.

The White House and Republicans have reached a deal in principle to raise the US debt ceiling and avoid a default. The deal still needs to be approved by Congress. Republicans have been seeking spending cuts in exchange for raising the debt limit, while Democrats have proposed raising certain taxes. Details of the new deal have not been officially released, but it reportedly includes historic reductions in spending and no major changes to Medicaid. The US Treasury had warned the country would run out of money to pay its bills on 5 June without a deal.