0 we'll likely need another one in a few months and another one after that. why is congress just staggering from crisis to crisis? and as some lawmakers pat themselves on the back for reaching a deal, people out there are still hurting. just ask the thousands of kids in danger of going hungry in one state because of this gridlock. good afternoon, everyone. i'm jake tapper. welcome to the lead. we'll begin with the money lead, live from capitol hill with just eight hours to go until the debt ceiling deadline, the mere promise of a promise has them partying. the dow jumped 200 points in reaction to news that a debt ceiling deal had been reached in the senate, and that's before the ink on the deal was even dry. we'll get to the politics of this all in a moment. but first, cnn's zain asher is live at the new york stock exchange with more on the stock surge. zain? >> reporter: hi, jake. yeah, so much excitement here on wall street, so much optimism. you know, not even a ratings agency giving us a warning card was enough to deter investors. traders have been trying to block out the noise and focus squarely on the fact that they believe that they know that a deal is going to get done. at one point, the dow surged 206 points. i've been speaking to traders all morning. i said, there's no deal just yet, so why the optimism? they say, look, we know how washington works. we know that no politician wants to pick up the pieces of a possible default. and even if we don't see a deal tonight, we know the treasury has enough money to buy us some time. but the worry among some traders is is that the markets really haven't reacts strongly enough to force washington to really act. and some people are asking me, when we come up against the next deadline, are we going to see the same political brinkmanship. as wall street basically let washington get away with this? jake? >> zain asher, thank you so much. we had braced ourselfed, but it looks like we may forget the threatened armageddon after all. the senate made it official a deal had been reached to reopen the government and raise the debt ceiling. >> the eyes of the world have been on washington all this week. and that is a gross understatement. and while they witnessed a great deal of political discord, today they will also see congress reaching historic bipartisan agreement to reopen the government and avert a default on the nation's bills. >> this is far less than many of us had hoped for, frankly, but it's far were the than what some had sought. now's time for republicans to unite behind other crucial goals. >> even if this deal sails through the senate, there is, of course, there still is the question of how house republicans will react. minutes ago, house speaker john boehner made it clear that as frustrated as his republican caucus might be with the outcome of this bipartisan lovefest in the senate, he plans on pushing his caucus to support the deal and put this battle behind them. >> we fought the good fight. we just didn't win. >> the man who's been called the other leader of the republican party in recent weeks, texas senator ted cruz, also pledged not to stand in the way of a vote, but he also collided his fellow gop members in the senate for not standing strong in a battle to tie obama care defunding the to a budget deal. >> the house of representatives has taken a bold stance, listening to the american people, but unfortunately, the united states senate has refused to do likewise. the united states senate has staid with the traditional approach of the washington establishment of maintaining the status quo and doing nothing to respond to the suffering that obama care is causing millions of americans. >> cruz also declared house republicans victorious for their, quote, profile in courage, although his attaboy may do little for those staring at the grim reality of more than 70% disapproval ratings for the republican party in congress. we don't want to get ahead of ourselves. it looks as though this sordid ordeal could be nearing its end, at least until it all comes up again in a few months. let's bring in cnn chief congressional correspondent, dana bash. dana, are there any indications yet on what the house might do once the bill makes it to them? >> reporter: well, i just came from standing outside of a house republican meeting where we're told that the speaker did make the case in private that you just described that he made on that radio show, to live to fight another day and to please support this bipartisan deal that's coming out of the senate. yes, he actually did urge republicans to support it. the way that this meeting that just went down was described by several republican congressmen who were in there, it feels like there was a lot of wound licking going on and trying to sort of pick up the pieces from what everybody agrees has been very bruising. not just when it comes to the public perception of republicans, specifically house republicans, but also the divided nature of the republican party right now. in fact, john boehner, i'm told, by one congressman, told the rank and file, we send the best messages when we are united, meaning, please vote for this. now, there could be several reasons that he's urging them to vote yes. maybe the most important is he doesn't want to have a vote count at the end, where it is a majority of democrats and a minority of republicans. it's not that he's not going to let this on the floor, he will, but it certainly will be better for him when it comes to his leadership, when it comes to the way he can, you know, be perceived as the head of the republican caucus in the house, as somebody who can at least get the majority together. the other interesting note that i was told is that the house majority leader, eric cantor, was very specific and honest about the divisiveness inside the republican caucus. he said, i'm told we have disagreements in this room about tactics, but he told them, we republicans have lost ground when people started talking about who's a better republican, who's a more pure republican. he said, those are not the conversations that we should be having. we should not be talking about tactics, we should be talking about principles. so a lot of bucking up and trying to heal the real divisions inside the republican party and particularly among house republicans. >> all right, dana bash, thank you so much. and here to talk more about the deal, senator chuck schumer, democrat of new york, welcome. senator. you see this school here, mccaffrey middle school, from california. they're here, they wanted to go see museums, they wanted to see exhibits, they wanted to see what any middle school kid they wanted to see when they come to washington, d.c. and they're upset. their government is not open for them. >> they should be. this should not be a day of exultation and happiness. we said three things, open the government, pay our debts and then we'll negotiates. that's exactly what the agreement calls for, but it took millions of people being hurt, some much more than these school kids. families not getting paychecks and so many other things. all because a small group of people thought that they were right to do what -- to hurt anybody they wanted, to get their way. and unfortunately, not in the senate, but in the house, speaker boehner, for too long, went along with them. the hope here. the silver lining in this cloud is that mainstream conservative republicans realize that the politics of confrontation, of reckless brinkmanship doesn't work, and we won't go through this on february 7th or on into the year. >> well, i want to talk about brinkmanship, because it seemed clear to me, when it came to the senate negotiations, last night and this morning between harry reid and mitch mcconnell, that democrats did not think that the republicans had any leverage, that democrats did not think that they had to give anything to republicans. i guess there's this provision to make sure that those who get stipends from the government are actually deserving of them, because of their income level. but beyond that, there wasn't really a give and take. >> there was not. >> it was, we're not giving you anything. you have no leverage and you're wrong. could this not have ended sooner if democrats had not taken such a hard line? >> well, it was not a hard line on the substantiative issues. it was a hard line saying, unless i get my way, i'm going to shut the government down and risk default for the nation. now, anyone can do that. i believe in immigration reform. what if i persuaded my caucus to say, i'm going to shut the government down, i am going to not pay our bills unless i get my way. it's a politics of idiocy, of conversation of paralysis. and so finally what happened, barack obama and democrats said, we're not going to give in to this kind of brinksmanship, where basically a gun is put to your head -- >> how much did obama and harry reid have to buck up democrats -- >> didn't. we were united. we have seen this brinksmanship over and over again. and we realized, if we didn't stand up now, we'd be playing the same politics of brinksmanship every quarter. and here is what i believe. i believe that certainly in the senate and even in the house, the hard right tea party group of republicans has been discredited. not only by the poll numbers, but because they really didn't have a strategy. and once everyone has learned that we democrats are no longer going to cave to this kind of brinksmanship, they won't try it again. so we'll have a much, much better next year than we did this year. >> tactically, was president obama seemed to be sitting out, at least publicly talking about this. what was going on behind the scenes? how involved was he, or was harry reid really driving the show? >> president obama, harry reid, democratic leadership, we were all on the same page. we said -- >> but who was in charge of driving -- >> well, it was a consensus. no one had to persuade the other. we both came to the conclusion early on that we could no longer cave to this kind of brinksmanship. i'll hurt everybody else unless you give in to me. so it was easy. and no one blinked at any one point. we knew that if we stood firm, because these tea party folks were so out of the mainstream, i love when ted cruz says, you know, the american people lost. well, fewer than 20% of the american people advocate his policy, which is, shut the government down, don't pay your debt unless we end obama care. some people want to do that, but not a majority, not even close. and so, what's happened here is that this extreme group has finally been stood up to. and now, maybe, in an ironic way, democrats have given mainstream republicans some of the strength to go forward and negotiate on a reasonable basis, where you get something and not everything. >> the debt is $17 trillion. and i understand that the annual deficit has gone down. but the debt is still a staggeringly high number. and you know if you look at projections for future years, with baby boomers retiring and health care costs continuing to rise, it's going to get worse. is this now a time, for whatever reason, whether it's because the tea party is so active and they're not going away, but is this now a time for democrats, republicans to actually sit down and say, we really need to take this seriously. okay, we don't approve of the tactics of the tea party, but they're right to shine a light on the serious problem -- >> with all due respect, we've made big progress on the debt. the deficit is about half of what it was several years ago. >> partially because of the sequester, right? >> partially because of the sequester, partially because we raised revenues. but there's another issue that is even more important. and that is that middle class incomes in america are declining. it has never happened, in the last decade it has, and we taught to give as much focus to that as to debt reduction. i am not belittling the importance of debt reduction, i believe in it. but it is not the only issue. and with the peaking of the tea party, i think other issues will come into play. for all we know, we may get a good immigration bill now, because same thing. small group of outliers said, i am not going to go for that. and in the past, too many republicans in the house went along. >> so, jay carney in the white house have used the word "ransom," we're not going to pay ransom, we're not going to do anything that the tea party wants us to do wants us to do, bcause they're -- >> threatening to hurt innocent people. >> i understand. but this provision, is that not some sort of concession? >> it is not. there's a report from the secretary of hhs to see if it's working, but there was verification, we believed in it, in the bill even before these negotiations began. it is frankly a bit of a fig leaf that we were happy to give, but that was not in negotiation. that was not what ted cruz and the others started to demand at the beginning. >> and why not take the opportunity also to look at some of the problems with obama care that are clearly there and would have been covered a lot more in the last couple of weeks if it were not for this mess? we have serious problems with the website. there are other issues, there are serious questions about restauranteurs, and whether or not they're going to have to reduce hours for employees. are those not serious concerns? >> the president himself has looked at -- when you pass such a major law, which in my view will do so much good, there are always going to be changes that have to be made. that happened with social security. that happened with medicare. but we didn't repeal them. we didn't try to find ways to thwart them, we tried to improve them. they will certainly be efforts to continue doing that at both ends of pennsylvania avenue, and there's nothing wrong with that. >> final thoughts on the last few weeks? >> well, again, a hope and a prayer. that is when i first got here to the congress and even my first several years in the senate, democrats and republicans sat down and negotiated. and we realized we would have to meet somewhere in the middle. i hope and pray that can be restored. we've had a politics of brinksmanship. two faults. one, obviously, the tea party hard liners. but the real fault lies in too many mainstream conservatives willing or being frightened, frankly, by them. hopefully those days, they're never going to be over, but those kind of policies are diminished, and we'll see much more productive legislating in the next few years. >> democrat chuck schumer, thank you for being here. coming up, senator ted cruz of texas says he will not hold up a compromise to reopen the government, but i'll talk to a lawmaker who says he's still voting no, no matter what. and he couldn't get the votes from his own caucus last night, but house speaker john boehner just got a standing ovation from house republicans. so where does his leadership go from here? stay with us. ♪ norfolk southern what's your function? ♪ ♪ hooking up the country helping business run ♪ ♪ trains! they haul everything, safely and on time. ♪ tracks! they connect the factories built along the lines. and that means jobs, lots of people, making lots and lots of things. let's get your business rolling now, everybody sing. ♪ norfolk southern what's your function? ♪ ♪ helping this big country move ahead as one ♪ ♪ norfolk southern how's that function? ♪ my turn daddy, my turn! hold it steady now. i know daddy. [ dad ] oh boy, fasten your seatbelts everybody. [ mixer whirring ] good thing we've got bounty. bounty select-a-size. it's the smaller powerful sheet, that acts like a big sheet. look! one select-a-size sheet of bounty is 50% more absorbent than a full size sheet of the leading ordinary brand. [ humming ] [ dad ] use less with the small but powerful picker upper. bounty select-a-size. and try bounty napkins. ♪ [ male announcer ] the parking lot helps by letting us know who's coming. the carts keep everyone on the right track. the power tools introduce themselves. all the bits and bulbs keep themselves stocked. and the doors even handle the checkout so we can work on that thing that's stuck in the thing. [ female announcer ] today, cisco is connecting the internet of everything. so everyone goes home happy.