Capitol Hill lawmakers signaled Tuesday that there is a bipartisan plan for a one-time process for Democrats to raise the debt ceiling, a statutory limit that allows the government to pay bills.

There had been growing worries of Republican dissent to block raising the debt ceiling, which would mean a catastrophic default. The new legislation would allow for the Senate to raise the debt ceiling by a simple majority vote. It would only need Democratic votes in the 50-50 Senate and with Vice President Kamala Harris breaking the deadlock.

Senate Majority Leader Chuck Schumer, D-N.Y., and Senate Minority Leader Mitch McConnell, R-Ky., both made public comments that suggested a vote is near.

“Over the past few days we have made good progress on this issue and I’m optimistic that we will be able to prevent the awful prospect of the U.S. defaulting on its sovereign debt for the first time ever,” McConnell said on the Senate floor.

A default would likely have a disastrous impact on the U.S. and global economies. Treasury Secretary Janet Yellen had repeatedly made dire warnings about a default.

Republicans had previously opposed raising the borrowing cap as a protest of the Biden administration's economic agenda.

Impending legislation from the Democrat-controlled House will be shared in a bill to prevent Medicare and farm aid cuts that were set for the start of 2022.

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