BREAKING- NEWS Washington (CNN) -- Senate leaders on Wednesday announced a deal to end the partial government shutdown and avoid a possible U.S. default as soon as the end of this week, and a key GOP conservative said he wouldnt try to block the measure. The news of a deal brought some relief to Wall Street as well as Washington, where the shutdown reached a 16th day with the government poised to lose its ability to borrow more money to pay bills on Thursday. Senate Majority Leader Harry Reid hailed the agreement he worked out with his GOP counterpart Mitch McConnell as historic, saying that in the end, political adversaries put aside their differences. Now the question becomes whether the agreement can win approval in the Senate and then the House to reach President Barack Obamas desk, perhaps by the end of Wednesday to ensure there is enough cash on hand for all U.S. debt obligations and bills. Obama praised Senate leaders for reaching a compromise, and urged Congress to act quickly, White House spokesman Jay Carney said. As soon as possible is essentially the recommendation we have from here, he said. Republican and Democratic members of the House were to meet separately in the afternoon to hear details of the proposal as well as weigh the next steps. House Speaker John Boehner has failed to corral his caucus around any remedy, while House Democrats have solidly supported their leaders. A senior GOP Senate aide said the Senate vote could come sometime Wednesday evening and a House leadership aide said the House could vote as early as tonight following the Senate. But both chambers will have to take special steps to get the legislation passed that quickly, raising concerns that tea party conservatives led by Sen. Ted Cruz of Texas would block or delay it in a final effort to include provisions intended to harm Obamas signature health care reforms. However, Cruz told reporters that he wouldnt mount a filibuster or employ other procedural moves against the agreement. At the same time, he criticized his Senate colleagues for what he called their failure to listen to the American people and said the fight against Obamacare will continue. National polls conducted since the start of the shutdown on October 1 indicate that while all sides are feeling the publics anger over the partisan political impasse, more blame is pointed at the Republicans in Congress rather than Democrats or Obama. U.S. stocks opened sharply higher on news of the Senate agreement with the benchmark Dow Jones Industrial Average jumping 200 points at one point. Reid said the Senate deal under discussion would reopen the government, funding it until January 15. It also would raise the debt limit until February 7 to avert a possible default on U.S. debt obligations for the first time. Also, the White House supports a provision in the deal that strengthens verification measures for people getting subsidies under Obamacare, spokesman Jay Carney said. Carney called the change a modest adjustment, and said it didnt amount to ransom for raising the federal debt ceiling because both sides agreed to it and the White House supported it. In addition, the Senate agreement would set up budget negotiations between the House and Senate for a long-term spending plan. McConnell fired an opening salvo for those talks, expected to begin soon and continue until December, when he said any ensuing budget deal should adhere to spending caps set in a 2011 law that included forced cuts known as sequestration. Preserving this law is critically important to the future of our country, McConnell said of the Budget Control Act, which resulted from the previous debt ceiling crisis in Washington. The focus on an agreement shifted to the Senate after House Republicans failed on Tuesday to come up with a plan their majority could support, stymied again by demands from tea party conservatives for outcomes unacceptable to Obama and Senate Democrats, as well as some fellow Republicans. Cruz, despite being in the Senate, is credited with spearheading the House Republican effort to attach amendments that would dismantle or defund the health care reforms known as Obamacare to previous proposals intended to end the shutdown. All were rejected by the Democratic-led Senate, and Obama also pledged to veto them, meaning there was no chance they ever would have succeeded. Republican Sen. Kelly Ayotte of New Hampshire called the House GOP tactic of tying Obamacare to the shutdown legislation an ill-conceived strategy from the beginning, not a winning strategy. However, Republican Rep. Steve King of Iowa advocated continued brinksmanship to try to change Obamacare, which conservatives detest as a big-government overreach. If were not willing to take a stand now, then when will we take this stand? he told CNNs New Day, adding that if the conservative Republican plan had been implemented five years ago, say at the inception of what is now the Obama presidency, we would have far less debt and deficit. Warnings of default Despite warnings by Obama and economists that a U.S. default would spike interest rates and could have catastrophic impacts at home and abroad, King said hes not too concerned if the government passes Thursdays deadline to raise the borrowing limit.Its just a date they picked on the calendar, he said, adding that the government will still be able to pay the interest on its debt. Im more concerned about market reaction than I am of default itself. Thursday marks the day the Treasury Department will run out of special accounting maneuvers to keep the nation under the legal borrowing limit. From that point on, it will have to pay the countrys incoming bills and other legal obligations with an estimated $30 billion in cash, plus whatever daily revenue comes in. The White House had said that the U.S. would lose its borrowing authority on Thursday, leaving it only with cash on hand to pay bills and therefore at risk of default. Carney clarified Wednesday that the borrowing authority would continue through Thursday. The expectation is that the Treasury will be able to pay bills in full for a short time after Thursday, but exactly how long remains unclear. According to the best outside estimates, the first day the government will run short of cash could come between October 22 and November 1. Officials warn that an unknown is whether creditors such as foreign countries that traditionally roll over their U.S. bond holdings could decide to instead cash out, creating a potentially major payout that the government would lack funds to fulfill. What happens next? A break from tradition If the Senate passes the agreement, Boehner will probably face the decision of whether to allow a vote that he knows can only pass with virtually all Democrats and only a few of his fellow Republicans supporting it. That would break a Republican tradition known as the Hastert rule. The informal tenet, named after former House Speaker Dennis Hastert, says that the House speaker does not introduce legislation unless a majority of Republicans say they will vote for it first. It has served to keep proposals off the floor, even if they have the prospect of passing via the votes of Democrats combined with those of some moderate Republicans. House Republicans have expected Boehner to uphold the rule, which asserts the partys interests in the chamber, and he has pledged to do so. However, Boehner has previously allowed votes on measures lacking full Republican support at times of similar brinksmanship, such as the fiscal cliff negotiations in late December and early January that raised tax rates on wealth Americans. I believe that John Boehner will likely be in a position, where he will have to essentially pass the bill that is negotiated between Sens. McConnell and Reid, said Republican Rep. Charlie Dent of Pennsylvania, who added that he would vote for the Senate plan. About 20 Republicans would have to back the Senate plan for it to pass, assuming that virtually all of the chambers 200 Democrats also would support it. Rep. Charles Rangel compares tea party in House to confederates Slow process Even so, it could take a day or two more for a deal to make it through the legislative process. By then, the nation will have run out of borrowing authority. While tax revenues will continue to stream in, that money will be enough to pay only part of the governments obligations over time. The impact is unclear in the immediate short term, but over days and weeks, it would mean that government officials would have to pick and choose which bills to pay and which to leave for another day. The prospect of the U.S. government running out of money to pay its bills and, eventually, finding it difficult to make payments on the debt itself, has economists around the world prophesying dire consequences. Mutual funds, which are not allowed to hold defaulted securities, may have to dump masses of U.S. treasuries. Ratings agency Fitch fired a warning shot Tuesday that it may downgrade the countrys AAA credit rating to AA+ over the political brinksmanship and bickering in Washington that have brought the government to this point. That could help raise interest rates on U.S. debt, putting the country deeper into the red. Rating agency Standard & Poors cut the U.S. credit rating from AAA to AA+ after the 2011 debt ceiling crisis. Moodys still has the U.S. rated AAA. Investors around the world appeared to be sitting on the sidelines Wednesday waiting out the days debate. Asian markets ended with mixed results, European markets were down slightly Friday afternoon and U.S. stock futures -- frequently taken as an indicator for how U.S. markets will open -- were up marginally before trading began Wednesday. Emergency brake? Some scholars have suggested that the 14th Amendment to the Constitution gives Obama an emergency brake to stop the default by ignoring what Congress does and borrowing in spite of having reached the debt ceiling. Section 4 of the amendment states: The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. Obama has rejected such claims, the Congressional Research Service has said. And other scholars say that by invoking the 14th Amendment in this way, the President would risk breaking other laws. But the same scholars who say this say they believe that section 4 was formulated to keep politicians from holding the debt hostage in order to impose their political will on the natio Government dysfunction sparks doomsday fears Muddled plan Disarray among House Republicans caused confusion on Tuesday, with Boehner having to pull a proposed agreement from the floor because conservatives found it too weak. The House proposal dropped some provisions on Obamacare but prohibited federal subsidies to the President and his administration officials as well as federal lawmakers and their staff receiving health insurance through the Affordable Care Act programs. It also would have forbidden the Treasury from taking what it calls extraordinary measures to prevent the federal government from defaulting as cash runs low, in effect requiring hard deadlines to extend the federal debt ceiling. House Democrats opposed the GOP proposal, which meant it couldnt pass without support from the 40 or so tea party conservatives, who wanted more spending cuts. It just kicks the can down the road another six weeks or two months, said Rep. Joe Barton, R-Texas. Stocks: Prepare for a bumpy ride Time running out Obama met Wednesday with Treasury Secretary Jack Lew, who has been looking for creative ways to cover U.S. financial obligations as the debt ceiling comes down. On Tuesday, Obama called for House Republicans to do whats right by reopening government and ensuring the United States can pay its bills. We dont have a lot of time, he said. But he acknowledged Boehners difficulty in getting his fellow House Republicans on the same page. Negotiating with me isnt necessarily good for the extreme faction in his caucus, Obama said, referring to the tea party and its conservative allies. It weakens him, so there have been repeated situations where we have agreements. Then he goes back, and it turns out that he cant control his caucus. Has shutdown affected you? Share your story with CNN iReport. CNNs Ben Brumfield, Greg Botelho, Michael Pearson, Paul Steinhauser, Ashley Killough, Craig Broffman, Jim Acosta, Dana Bash, Deirdre Walsh, Mark Preston, Dan Merica, Brianna Keilar and Janet DiGiacomo contributed to this report. 18256 Comments » SHARE THIS Print Email More sharing You Might Like Fifteen of the Most Bizarre Cat Breeds Fifteen of the Most Bizarre Cat Breeds Kittentoob Five Jobs That Dont Require a Bachelors Degree...And Pay More Than Those That Do Five Jobs That Dont Require a Bachelors Degree...And Pay More Than Those That Do Education Portal What Happened?! Stars We Thought Would Grow Up Fine But… What Happened?! Stars We Thought Would Grow Up Fine But… MadameNoire 5 Places to Travel to This Year 5 Places to Travel to This Year lululemon The startling CNN poll on the shutdown The startling CNN poll on the shutdown CNN Ted Cruz is right about Obamacare Ted Cruz is right about Obamacare CNN Paul: Obama does nothing to stop war on Christianity Paul: Obama does nothing to stop war on Christianity CNN Boehner learned hard lesson in failed House coup Boehner learned hard lesson in failed House coup CNN Recommended by ADVERTISEMENT Part of complete coverage on Shutdown Showdown Watch Shutdown Showdown with Jake Tapper Jake Tapper has the latest, CNN Live, 11 p.m. ET. The list: Whats open, whats closed What is the status of federal agencies during the government shutdown? 12 things I know about the debt ceiling and the shutdown Why prioritization wont work and why Oct. 17 is not default day. Our shutdown fears have been realized updated 11:03 AM EDT, Wed October 16, 2013 It just about broke Elise Kanims heart to have to tell her 6-year-old daughter, Piper, that she couldnt buy her a Halloween costume this year. 4 ways a debt ceiling crisis could affect you Its time to start thinking about the unthinkable, if you havent already. Heres what many believe is at risk if lawmakers do decide to test the waters of default. Look whos keeping their paycheck While more than 800,000 federal workers are being furloughed, members of Congress are still getting paid. Shutdown showdown: Where its headed updated 11:44 AM EDT, Tue October 8, 2013 What now? How the world sees the U.S. shutdown Around the world, politicians and commentators have been weighing in with their take on how the U.S. got here, what happens next, and whether their own countries should be worried. By the numbers: Shutdown and debt ceiling updated 12:40 PM EDT, Tue October 8, 2013 With a lot of facts and figures thrown around the government shutdown and the looming debt ceiling deadline, here are the ones you need to know. Is there an endgame? updated 6:25 PM EDT, Fri October 4, 2013 As the country goes into the weekend with the government shut down and neither side talking, there seems to be little hope for breaking the impasse any time soon. Opinion roundup: Sorry spectacle or shock treatment? updated 12:09 PM EDT, Sat October 5, 2013 Journalists and experts have been sorting through the claims of Republicans and Democrats. Heres a sampling of pieces published by CNN Opinion: In pain, girl waits for government to open updated 11:55 AM EDT, Fri October 4, 2013 The happiest day in Justin Smiths life -- next to the day his daughter was born -- was March 5, 2013. Photos: Sorry, were closed updated 7:48 AM EDT, Mon October 14, 2013 See images of national parks, museums and other casualties of the partial government shutdown. Opinion: Shutdown cripples science updated 6:44 AM EDT, Fri October 4, 2013 Meg Urry says loss to science is greater as critical astronomical work could be affected. Government shutdown: What we know and dont know updated 11:28 AM EDT, Wed October 2, 2013 Were only two days into this government shutdown, but it already seems like weve been here before. Democrats, Republicans and the insane leap into the abyss updated 8:18 AM EDT, Wed October 2, 2013 How is it possible that both parties have failed so badly in the relatively simple task of keeping the federal government open for business? 10 ways a shutdown affects you updated 12:26 AM EDT, Tue October 1, 2013 Ticktock. If Democrats and Republicans dont stop bickering and agree on how to end the shutdown, many will feel the impact. 20 Questions: Why it happened, what you need to know updated 7:49 AM EDT, Tue October 1, 2013 The basics and the complex answers about the government shutdown CNN Poll: Americans to blame GOP for shutdown More people say congressional Republicans rather than President Barack Obama would be responsible, according to a new national survey. What happens in a shutdown? The risk of a shutdown is now a distinct possibility. And federal agencies have been instructed to make plans for one just in case. The architect of the shutdown updated 7:22 PM EDT, Tue October 1, 2013 One of the most prominent developers of the plan that could shut the government down is a little-known freshman congressman. Key players in shutdown showdown updated 6:53 PM EDT, Wed October 9, 2013 As the government marches toward a possible shutdown next week, whos calling the shots as this D.C. drama unfolds? Photos: The last shutdown updated 5:02 PM EDT, Mon September 23, 2013 Many government services and agencies were closed at the end of 1995 and beginning of 1996 as President Bill Clinton battled a GOP-led Congress over spending levels. Ted Cruz Debt Ceiling Bin Laden Raid More from CNN Video: Funny or Die: Rebecca Romijns hand braPlay Video Funny or Die: Rebecca Romijns hand bra Flesh-eating drug gains popularityPlay Video Flesh-eating drug gains popularity Obama: GOP doesnt get to demand ransomPlay Video Obama: GOP doesnt get to demand ransom Elizabeth Smart: Days consisted of rapePlay Video Elizabeth Smart: Days consisted of rape More from CNN: Statue of Liberty, Grand Canyon, Mount Rushmore to reopen Statue of Liberty, Grand Canyon, Mount Rushmore to reopen Can Ryan and Obama reopen the government; beat debt limit deadline? Can Ryan and Obama reopen the government; beat debt limit deadline? 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