Senate approves two-year budget deal that prevents default on debt

WASHINGTON — The Senate passed a two-year budget deal early Friday that would prevent the U.S. government from defaulting on its debts next week and help avert a potential government shutdown in December.
Senators voted 64-35 to approve the legislation shortly after 3 a.m.
The House approved the budget agreement Wednesday despite opposition from a majority of Republicans. President Obama was poised to sign it into law.
The legislation would raise the debt limit through March 2017, allowing the government to continue to borrow money to pay its bills. The Treasury Department has warned that the government will default on its debts unless the limit is raised by Tuesday.
The deal also lifts budget caps to boost spending for military and domestic programs by a total of $80 billion over two years. That reduces the possibility of a government shutdown in December, when current funding for federal agencies expires. Additionally, it would protect senior citizens from an expected spike in Medicare premiums next year.
The increased spending — divided equally between military and domestic programs — would be offset in part by changes in the Social Security system designed to achieve $168 billion in long-term savings.