Washington Post story on the deal:

The emerging agreement calls for raising the $14.3 trillion debt limit by up to $2.4 trillion in two stages, with the debt limit rising unless two-thirds of both chambers of Congress disapprove, according to officials in both parties familiar with the talks. That would extend the Treasury’s borrowing authority into 2013, satisfying President Obama’s demand to avoid another showdown over the issue in the heat of the 2012 presidential campaign.

The first stage would pair an increase of roughly $1 trillion with cuts to government agencies of about the same magnitude over the next decade. In the second stage, a special congressional committee would be created to identify additional savings later this year. The size of those savings would dictate the size of the second debt-limit increase, giving Republicans the dollar-for-dollar matchup they have demanded between spending cuts and the debt-limit increase.

The focus of talks Saturday was a mechanism to force the committee to act and to ensure that Congress adopts its recommendations. Late Saturday, McConnell and Biden appeared to have settled on a trigger that would cut most government spending – including the defense budget and Medicare — by as much as 4 percent if the committee failed to produce a plan to tame the spiraling national debt, the officials said.

It was not immediately clear whether House Speaker John A. Boehner (R-Ohio) would accept the emerging framework, or whether he could persuade his fractious caucus to support it. But Boehner, too, showed signs of paving the way for compromise Saturday, convening a meeting of the Tuesday Group, a bloc of about 45 moderate Republicans whose votes would be key to pushing any deal through the House.

In the second stage, a special congressional committee would be created to identify additional savings later this year.

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The focus of talks Saturday was a mechanism to force the committee to act and to ensure that Congress adopts its recommendations.