Biden and McCarthy held a 90-minute phone call on Saturday evening to discuss the deal.
The deal would avert an economically destabilising default,so long as they succeed in passing it through the narrowly divided Congress before the Treasury Department runs short of money to cover all its obligations. Support from both parties will be needed.
Republicans who control the House of Representatives have pushed for steep cuts to spending and other conditions,including new work requirements on some benefit programs for low-income Americans and for funds to be stripped from the Internal Revenue Service,the US tax agency.
McCarthy has vowed to give House members 72 hours to read the legislation before bringing it to the floor for a vote.
They said they wanted to slow the growth of the US debt,which is now roughly equal to the annual output of the country’s economy.
Exact details of the final deal were not immediately available,but negotiators have agreed to cap non-defence discretionary spending at 2023 levels for two years,in exchange for a debt ceiling increase over a similar period,sources told Reuters earlier.
The two sides have to carefully thread the needle in finding a compromise that can clear the House,with a 222-213 Republican majority,and Senate,with a 51-49 Democratic majority.