Congressional leaders and the White House said they have reached an agreement to avoid automatic budget limits and suspend the debt ceiling for two years, which would push a contentious battle over spending beyond the 2020 election. President Trump and Democratic leaders announced the deal, which increases spending by $320 billion, according to a congressional aide.

"I am pleased to announce that a deal has been struck with Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer, Speaker of the House Nancy Pelosi, and House Minority Leader Kevin McCarthy - on a two-year Budget and Debt Ceiling, with no poison pills," Mr. Trump tweeted. "This was a real compromise in order to give another big victory to our Great Military and Vets!"

A Pelosi aide told CBS News that the speaker spoke to Treasury Secretary Steven Mnuchin three times on Sunday, with Schumer joining on one occasion. The conversations continued Monday morning when the three spoke again, and in the afternoon, when Mnuchin called to address any outstanding issues. Mnuchin then hosted a conference call with Pelosi, Schumer and McCarthy at 5 p.m. and told them the president would be tweeting within the hour announcing the deal.

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After the president's tweet, Schumer and Pelosi quickly hailed the "bipartisan agreement" in a statement, saying they were "pleased that the Administration has finally agreed to join Democrats in ending these devastating cuts." The Democratic leaders said they had secured an increase in non-defense spending that "exceeds the defense number by $10 billion over the next two years" and agreed to suspend the debt limit until July 31, 2021.

"The House will now move swiftly to bring the budget caps and debt ceiling agreement legislation to the Floor, so that it can be sent to the President's desk as soon as possible," Schumer and Pelosi said. "With this agreement, we can avoid the damage of sequestration and continue to advance progress for the people."

Rebecca Kaplan contributed reporting.