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The Senate approved a crucial bipartisan budget agreement early on Friday that would avert a government default and stands to end nearly five years of pitched battles between congressional Republicans and the Obama administration over fiscal policy. The measure, which was approved 64 to 35, now goes to the White House, where President Obama is ready to sign it. (Herszenhorn, 10/30)

The deal would also avert a looming shortfall in the Social Security disability trust fund that threatened to slash benefits, and head off an unprecedented increase in Medicare premiums for outpatient care for about 15 million beneficiaries. (10/30)

Friday’s early morning vote of 64-35 will enact a sweeping deal that came together only days before. Congressional leaders reached an agreement with the White House late Monday increasing spending by $80 billion through September 2017 and increasing the federal government’s borrowing limit until mid-March 2017. ... The latest agreement split Republicans, dividing those who wanted to see higher defense spending from those who said the bill didn’t extract enough spending reductions in exchange for increasing the debt limit. (Peterson, 10/30)

To offset this cost, negotiators tapped a number of sources, including making changes to Medicare and Social Security, auctioning off government-controlled wireless spectrum, selling crude oil from the Strategic Petroleum Reserve and tightening tax rules for business partnerships. ... The agreement also will prevent a potential 20 percent across-the-board cut to Social Security Disability Insurance benefits scheduled to take place next year, by transferring resources from the main Social Security fund and making changes to the program. The cost-saving revisions include allowing some recipients who can still work to receive partial payments while earning outside income, and expanding a program requiring a second medical expert to weigh in on whether an applicant is legitimately disabled. (Snell, 10/30)

Senate Majority Leader Mitch McConnell, R-Ky., had a harder time convincing Republican senators to support the bill. Many conservatives objected to lifting the budget caps and raising the debt limit. ... By pushing the deal quickly through the House, outgoing Speaker John Boehner, R-Ohio, eased pressure on his successor, Rep. Paul Ryan, R-Wis. Ryan, who was sworn in as the new speaker on Thursday, will not have to begin his tenure by facing an imminent fiscal crisis. (Kelly, 10/30)

A burst of legislative activity in Congress this week, culminating in a two-year budget deal, could lift the cloud of uncertainty and modestly boost the economy by rolling back fiscal austerity. ... Lawmakers also included two important changes that will avert potential payment spikes and benefit cuts for seniors and the disabled. The budget agreement takes steps that will block a 52% jump in Medicare premiums for about 30% of beneficiaries next year. Premiums will now increase by 15% for those beneficiaries. AARP, a lobby for older Americans, praised lawmakers for heading off the premium increase. (Timiraos, 10/29)

Sen. Ted Cruz (R-Texas) cancelled campaign events and returned to Washington to speak out against the deal, telling NBC News as he left that he had returned "because this budget deal is a disaster, it's Republican leadership joining with Democrats to fund all of President Obama's big government priorities." Sen. Marco Rubio (R-Fla.) also made a appearance on the Senate floor, voting against the budget measure but not giving a speech. Rubio had not voted since October 20, and before today had missed 18 of 19 votes the Senate had taken in the month of October. (Thorp and Duchon, 10/30)

While the deal lifts spending levels, it doesn't completely eliminate the risk of government shutdowns in the future. Congress must pass a new spending package, based on the budget deal's guidelines, by Dec. 11. If controversial policy provisions are inserted into that spending package, they could easily cause problems and increase the threat of a shutdown. (Shabad, 10/30)