Congress also scrambled late Friday night to pass a short-term stopgap measure cutting the first $2 billion to buy time and keep the government open while the budget would be constructed. Shortly before midnight, the Senate approved the continuing resolution, and the House passed it soon after midnight.
In a joint statement, House Speaker John Boehner (R-OH) and Senate Majority Leader Harry Reid (D-NV) hailed the deal as an "historic" achievement.
"We have agreed to an historic amount of cuts for the remainder of this fiscal year, as well as a short-term bridge that will give us time to avoid a shutdown while we get that agreement through both houses and to the President," the two said.
Although a shutdown technically occurred at midnight, the stopgap bill included language to retroactively cover any consequences that may have transpired from the short lapse in funding.
President Barack Obama also praised the accord as a monumental breakthrough, announcing shortly before midnight that come Saturday morning, "the entire federal government will be open for business -- and that's because today Americans of different beliefs came together again."