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Senate Majority Leader Mitch McConnell announced the two-year budget agreement, which will provide almost US$300 billion more for defence and non-defence spending, ending a months-long impasse on spending priorities.

The US senate has agreed on a two-year 400 billion dollar (£286 billion) budget deal which would provide huge increases on defence and domestic spending.

"The compromise we've reached will ensure for the first time in years our armed forces will have more of the resources they need to keep them safe", McConnell said announcing the deal Wednesday on the Senate floor.

House Democratic Minority Leader Nancy Pelosi, D-Calif., stated prior to McConnell's announcement that she won't support passing the budget bill, and encourages others to do the same.

Senate Minority Leader Chuck Schumer of NY, speaking on the floor after McConnell, said the agreement was completed "without a great deal of help from the White House". As Trump was keen to note, it includes a major bump in military spending, with smaller increases for domestic programs, and authorizes funds for disaster aid, community health centers, the Children's Health Insurance Program and combating the opioid crisis.

Current federal funding runs out at midnight on Thursday, and if Congress does not pass a new spending bill, it will trigger a partial government shutdown.

The administration is urging Congress to pass the plan and send it to the president's desk without delay.

The deal also provides nearly $90bn for disaster relief efforts in Texas, Florida and Puerto Rico, which have been hard-hit by hurricanes in the past year.

U.S. budget hawks have labelled a plan to hike defence and domestic spending by hundreds of billions of dollars as a debt-ballooning "monstrosity".

The budget deal is expected to pass the Senate but may encounter difficulties in the House.

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Both Democrats and Republicans in the House of Representatives have voiced disapproval of the bipartisan bill.

The California congresswoman has called for the bill to include a provision shielding so-called Dreamers, young immigrants who entered the U.S. illegally as children, from deportation.

"I think we will [pass the bill] - I feel good", Wisconsin Republican House Speaker Paul Ryan said.

Pelosi filibustered House business for over eight hours with a marathon floor speech demanding a vote on DACA. Majority Leader Mitch McConnell of Kentucky called the plan a "significant agreement" that gives both parties what they want.

The plan also raises the debt ceiling significantly, increasing spending by about $300 billion over two years. Trump said on Tuesday he'd "love to see a shutdown if we can't get this stuff taken care of".

Dreamers, the immigrants who came to the US illegally as children, risk deportation with the expiration of DACA, which has allowed them to apply to live and work here. But Trump ended the program last September, and set March 5 as a deadline for resolving the issue.

On Thursday, the Republican House speaker promised to offer an immigration "solution" once the chamber has passed the budget bill.

"This bill is a product of extensive negotiations among congressional leaders and the White House".

The interesting part of this is that it's a two-year deal, which means that it binds the next Congress.

"I have been relentlessly pressuring Congressional leadership to make sure that West Virginia gets the funding it needs to end the opioid epidemic and invest in high-speed internet and broadband access throughout our state, and I'm glad this funding will be included in the final budget deal", he said.