U.S. Senate leaders announce two-year budget deal

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CNN 

Senate leaders unveiled a massive two-year budget deal today, a major victory for both parties that could prevent a government shutdown at the end of this week and increase the federal government’s spending. But the plan still needs to pass the House, where it’s already facing strong headwinds.

Majority Leader Mitch McConnell unveiled the deal with Minority Leader Chuck Schumer on the Senate floor, which would boost military and nondefense spending by $300 billion over the next two years as well as add more than $80 billion in disaster relief. About $160 billion would go to the Pentagon and about $128 billion would to nondefense programs. The agreement also includes aid to respond to recent natural disasters.

The key outlying issue appears to be for how long to hike the debt ceiling, which the U.S. is expected to hit next month, though the exact parameters were still being negotiated when the deal was announced.

The Senate planned to vote later today on the House-passed stand-alone defense funding bill, which is expected to fail at a procedural vote. Then senators take up the House-passed budget continuing resolution. The cloture vote on that is expected to be Thursday, at which point they’ll strip the House language, and replace it with the Senate language.

While that bill is expected to pass easily in the Senate, the House will be a tougher sell. The caps deal will likely need Democratic support, and some Democrats have been emphatic that they don’t want to agree to raise budget caps until they have assurances that recipients of the Deferred Action for Childhood Arrivals immigration program will be protected. There’s no indication from congressional negotiators that that will be the case.