House Speaker Kevin McCarthy confirmed Saturday that the White House and Republicans have reached a tentative deal on the debt ceiling.
"I just got off the phone with the president a bit ago. After he wasted time and refused to negotiate for months, we've come to an agreement in principle that is worthy of the American people," McCarthy said.
McCarthy is expected to give remarks Saturday evening.
The welcome breakthrough comes just days before June 5 -- the date Treasury Secretary Janet Yellen warned the U.S. could run out of cash to pay all of its bills on time.
A tentative deal will have to pass the Republican-controlled House and Democrat-controlled Senate.
Time is of the essence to push the deal through before potential default. McCarthy's pledged to give House members 72 hours to review the legislation before a vote. And in the Senate, it would only take one lawmaker to possibly delay approval for up to a week.
Wings from both parties expressed dissatisfaction during talks and encouraged their respective leaders to stand their ground.
The House Freedom Caucus, a group of conservative hardliners who held up McCarthy's ascension to the speakership, signaled opposition to anything other than the Limit, Save, Grow Act passed last month. On the other side of the aisle, several progressive Democrats warned they would push back on any deal that gave too many concessions to Republicans.
The fight over the debt ceiling has threatened to sink the economy.
Economists have warned the U.S. being unable to fulfill financial obligations would put millions of jobs at risk, increase unemployment levels and lead to higher prices for everyday items.
A default could also result in Social Security, Medicare and Medicaid payments -- as well as military pay and veterans benefits -- going unpaid or being delayed.
As the negotiations came down to the wire, Americans who depend on those checks expressed growing concern and anxiety surrounding their ability to pay rent, buy groceries and other daily expenses if default were to occur.
Air Force veteran Jacob Thomas in Minneapolis told ABC News' Elizabeth Schulze the uncertainty over default was already hitting American military families.
"Even if a deal is reached, everything winds up being okay next week, that still means that right now, families and veterans across the country are having to think about what does it mean for me to have to ration my current paycheck or my current disability paycheck," Thomas said.