08/01/2011 03:08 EDT | Updated 10/01/2011 05:12 EDT

House begins debate on debt limit compromise as lawmakers race to avoid potential default

WASHINGTON - Congress has started debating the debt limit compromise negotiated by President Barack Obama and Republican leaders.

The GOP-run House began considering the bill less than a day after the White House and top lawmakers reached agreement on a dispute that had locked them in deadlock for months.

The Obama administration has said the government would run out of money if Congress does not extend its borrowing authority by Tuesday — which administration officials and others say would cause a default that could set back the world economy.

The measure would extend the current $14.3 trillion debt ceiling by up to $2.4 trillion and pare federal spending by more than $2 trillion.