House Republicans said Friday they intend to extend the nation's borrowing authority for three months, but will not agree to a long-term increase on the debt limit until both chambers of Congress approve a budget.
President Obama's spokesman, Jay Carney, said the White House is "encouraged" and repeated a call for an increase in the nation's borrowing authority without any restrictions.
A three-month extension would ensure the federal government does not default on its obligations. Treasury Secretary Timothy Geithner told Congress the nation will reach its debt limit sometime between mid-February and early March.
A vote on the temporary debt limit extension will take place next week, the Associated Press reports.