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Reid signs off on debt deal

Senate Majority Leader Harry Reid has signed off on a debt-ceiling agreeement with the White House and congressional leaders -- pending caucus approval -- his spokesman Adam Jentleson said in an email message to reporters.

This statement came after Reid and Democratic leaders emerged from almost two hour meeting in House Minority Leader Nancy's Pelosi's office.

The final hold up? A GOP source with knowledge of the debt talks tells NBC News that the "last hurdle" to arriving at a deal has to do with cuts to the Defense Department.

In the event that the special commission -- or "Super Congress" -- fails to reach an agreement, and automatic cuts are triggered, the Obama administration would like to see Defense cuts equal 3% of its annual budget in the first year.

The GOP is saying that is way too high, and would like that number to come down to 2% or less.