US finally agrees new budget

A new deal to raise the debt ceiling and reopen the government was confirmed late last night (October 16th) in the US.

Congress announced that it had come to an agreement over a new budget that means the shutdown can come to an end – more than two weeks after it started.

US president Barack Obama – who has regularly aired his frustration over the debt ceiling issue in recent weeks – signed off on the bill in the early hours of this morning.

The Democratic-controlled Senate's bipartisan compromise gained approval by 81 votes to 18 and after it went on to the House of Representatives, it won 285-144.

Mr Obama warned that lawmakers in the US are now going to have to work hard to regain the trust of the American people, adding: "We've got to get out of the habit of governing by crisis."

The International Monetary Fund's leader Christine Lagarde recently warned that if the US did not raise its debt ceiling ahead of today's deadline, it would have repercussions around the world.

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