EU governments and the European Parliament reached a deal early Thursday on the bloc's 2017 budget, paving the way for 134.5 billion euros (144.1 billion dollars) in spending next year.
EU budget negotiations are traditionally fraught, with member states seeking to limit expenditures while the legislature often advocates more spending.
The European Parliament had proposed a 2017 budget of 138 billion euros, compared to a cap of 133.8 billion euros demanded by EU governments.
Most of the EU money flows back into the bloc's 28 countries, for everything from agricultural subsidies and support for poorer regions to research and education programmes.
"The strength of the 2017 EU budget lies in its focus on priority measures such as addressing migration ... and encouraging investment as a way to help stimulate growth and create jobs," said Slovak State Secretary for Finance Ivan Lesay, whose country holds the rotating EU presidency.
"We will maintain expenditure to manage the refugee crisis at a high level," German representative Jens Spahn said.
EU lawmaker Jens Geier, who led the negotiations on behalf of the parliament, said he was "satisfied with the result."
The 2017 budget also allocates funds for additional security measures at external EU borders, after more than 1 million migrants and asylum seekers reached the continent last year.
Next year's spending plans are 6.5 per cent lower than the 2016 budget, with the reduction due mostly to the slow start of regional aid programmes in the bloc's new seven-year budgeting cycle.