Oct 16 (Reuters) - The U.S. Congress is expected to vote on Wednesday to approve a bipartisan deal ending a federal government shutdown and raising the Treasury Department's borrowing authority.
The hard-fought agreement between Democratic and Republican Senate leaders came on the 16th day that many federal agencies were closed due to a lack of funding from Congress.
Without quick action, the U.S. government would start risking a default when its credit limit is exhausted on Thursday.
The measure represents a defeat for conservative Republicans in Congress who had demanded major changes to the "Obamacare" healthcare law. They were using the debt limit and temporary government spending bills as leverage to delay or defund Obamacare. But in the end, enough Republicans appeared poised to join with Democrats to end the stalemate.
Here are the provisions of the legislation, which Obama could soon sign into law, assuming passage by the Senate and House of Representatives:
* Extends U.S. borrowing authority until Feb. 7. The Treasury Department would maintain its ability to use "extraordinary measures" to temporarily avoid default if Congress does not again raise the debt ceiling by that date. House Republicans wanted to prohibit the use of such measures.
Under a device that allows lawmakers to assert they did not vote for raising the ceiling, President Barack Obama would notify Congress that he is raising the U.S. debt limit, giving lawmakers the opportunity to override him with a two-thirds vote of each chamber. But that is unlikely to happen.
* Extends federal spending, at current levels, until Jan. 15. The deal maintains the across-the-board spending cuts known as "sequestration" that began earlier this year. Democrats likely will try to remove or revise those automatic cuts in subsequent talks.
* Creates a House-Senate bipartisan panel to try to come up with long-term deficit-reduction ideas that would have to be approved by the full Congress. Their work would have to be completed by Dec. 13 - a Friday the 13th.
The panel is likely to look at potential savings to entitlement programs, such as Social Security, Medicare and Medicaid, as well as tax reforms that could raise revenues.
But there is nothing in the legislation forcing this panel to actually agree to anything. Democrats and Republicans have been far apart over raising taxes and cutting benefit programs.
* Establishes new measures to try to prevent federal subsidies from being paid under the new "Obamacare" healthcare law to people whose incomes make them ineligible.
* Delivers back pay to federal workers who did not receive their wages because of the government shutdown.
(Reporting By Richard Cowan; Editing by Karey Van Hall and Tim Dobbyn)