After the shutdown debacle in October, congressional republicans and democrats signed a temporary "kick the can down the road" style deal. This deal included a continuing resolution, keeping the budget the same as it was, but specified that a budget deal would have to be reached by December 13th. In January, the continuing resolution would expire, and in February, the debt ceiling would need to be raised again.
Paul Ryan and Patty Murray arrived at a compromise deal. This deal sets the budget for the next two years, and would reverse most of the sequester cuts with savings from other areas, and includes $22.5 in additional deficit reduction. Some of this comes from federal employee pensions. Republicans are angry because the deal effectively repeals the sequester, and Democrats are disappointed that additional tax revenues and an extension to the unemployment benefit would have to be negotiated separately. Obama praised the deal as an important first step, and said he would sign it if congress passes it.
It seems to me that, though this deal unfortunately doesn't include things like an extension of the unemployment benefit or additional stimulus spending, it's still not a bad deal for two reasons. First, it repeals the sequester cuts, which slowed job and economic growth, and only existed as a (failed) tool to get congress to act, not a considered attempt to reduce the deficit. Second, and most importantly, it means we don't have to deal with these constantly manufactured crises. And they aren't just politically frustrating, they're economically damaging: the government shutdown cost the economy $25 billion.
I'm cautiously optimistic, but it hasn't passed yet. Opposition to the bill is building among Republicans in the House of Representatives, and Mitch McConnell doesn't seem to like the deal. We'll find out in the next few days, as congress goes into recess on the 16th.