President Obama announced Sunday night that Congressional leaders from both parties have reached an agreement on a plan to raise the debt ceiling.
Now both the House and Senate must debate and vote on this proposal, but the President has indicated he will sign it if it stays in its present form.
Here is a timeline of events in the debt ceiling debate over the last nine months:
November 2010: Midterm elections giving Republicans control of the U.S. House also bring new GOP Tea Party members into chamber.
December 2010: Simpson-Bowles Commission calls for Social Security reforms and overhaul of tax code.
January 2011: "Gang of Six" senators begin meetings on deficit and debt ceiling
Tuesday, January 25: In "State of the Union" Address, Pres. Obama calls for limiting non-entitlement & defense spending.
Monday, February 14: Pres. Obama submits 2012 budget to Congress.
Wednesday, April 13: President Obama delivers national address on budget, calling for $4 trillion in cuts over next decade.
Friday, April 15: House passes Budget Committee Chairman Ryan (R-WI) 2012 budget with $4.4 trillion in spending cuts over the next decade, including reforms to Medicare and Medicaid. Senate Majority Leader Reid says he will not call up this budget.
Wednesday, May 11: Speaker of the House Boehner says he will not support debt limit increase without equal amounts of spending cuts.
Monday, May 16: Treasury Secretary Geithner sets August 2 as "final" deadline for raising the debt ceiling.
Tuesday, May 17: Sen. Tom Coburn (R-OK) leaves "Gang of Six" talks.
Tuesday, May 31: Debt ceiling bill with no spending cuts fails in the House.
Thursday, June 23: House Majority Leader Eric Cantor (R-VA) leaves Biden talks.
Saturday, July 2: Pres. Obama and Speaker Boehner begin talks on "Grand Bargain" to reduce $4 trillion from deficit.
Saturday, July 9: Speaker Boehner leaves talks with Pres. Obama on "Grand Bargain."
Friday, July 15: Private talks between Pres. Obama, Speaker Boehner & Majority Leader Cantor continue on "Grand Bargain."
Monday, July 18: Sen. Coburn returns to "Gang of Six" with a $3.7 trillion reduction plan.
Tuesday, July 19: House passes "Cut, Cap and Balance" bill, Pres. Obama insists on additional $400 billion in revenue by allowing certain Bush-era tax cuts to expire
Thursday, July 21: Speaker Boehner leaves talks with Pres. Obama over demand for additional $400 billion in revenue
Friday, July 22: The Senate kills "Cut, Cap and Balance" bill. Pres. Obama holds a news conference on status of debt ceiling negotiations.
Saturday, July 23: Pres. Obama calls Congressional leaders to the White House.
Sunday, July 24: Speaker Boehner announces a second House GOP version of a debt ceiling plan, providing short-term extension of the debt ceiling, required vote on balanced-budget amendment to extend ceiling further.
Monday, July 25: Pres. Obama addresses nation from the East Room of the White House and asks the public to contact members of Congress about debt ceiling legislation.
Tuesday, July 26: Congressional Budget Office says neither Boehner nor Reid plan produce savings they claim. Pres. Obama says he will veto the Boehner plan. Speaker Boehner and Majority Leader Reid promise to block each other's bills.
Wednesday, July 27: 53 members of Senate Democratic caucus announce opposition to Boehner plan.
Thursday, July 28: House debates Boehner plan but postpones final vote because of lack of support within House GOP conference.
Friday, July 29: Updated Boehner plan passes in the House 218-210 and is immediately tabled in the Senate.
Saturday, July 30: Senate takes up Reid plan but puts off vote to proceed. The House pre-emptively votes down Reid bill. The White House negotiates with Senate Minority Leader Mitch McConnell (R-KY) on his plan.
Sunday, July 31: President Obama announces at 8:40pm ET Sunday night that bipartisan Congressional leaders have reached an agreement on a plan.
Monday, August 1: House passes compromise debt plan, 269 to 161. 66 Republicans voted against the proposal, 95 Democrats voted in support of the bill.
Tuesday, August 2: Senate passes compromise debt plan, 74 to 26. 28 Republicans, 45 Democrats and 1 Independent (Lieberman) voted in support of the compromise agreement. 19 Republicans, 6 Democrats and 1 Independent (Sanders) voted against it. President Obama signs the agreement shortly after passage.