The US Senate has approved a bill that raises the country's borrowing limit and averts a possible default, after the lower house of congress approved it on Monday following weeks of political wrangling.
The upper house of congress passed the measure by 74 votes to 26. It required 60 votes to pass.
Barack Obama, the US president, signed the bill into law following Tuesday's vote.
The earlier passage of the bill by the Republican-controlled House came a day before the deadline to lift the debt ceiling, with agreement between Republicans and Democrats over the $2.1 trillion deficit-cutting plan reached over the weekend.
In remarks delivered immediately following the passage of the bill in the senate, Obama said that "both parties need to take responsibility for improving this economy".
The president emphasised the need for congress to work towards passing stalled trade bills that created more jobs. He also said that he wanted to see unemployment benefits extended.
Obama said that politicians need to continue to work towards finding a balanced approach to reducing the deficit, including some adjustments to healthcare benefit plans for the elderly and reforming the tax code so that the wealthy pay more.
"We can't balance the budget on the backs of the very people who have borne the biggest brunt of this recession," he said.