The US Senate has sent to the president a bill to raise the country’s borrowing limit for another year, ending a series of political standoffs over the issue.
The chamber passed the bill on a 55-43 party line vote a day after it narrowly passed the House of Representatives.
US officials had warned of a possible default at the end of the month if Congress did not act.
The move came after Republicans gave up on their attempt to win concessions in return for raising the limit.
The measure now goes to President Barack Obama to sign into law.
“I’m pleased that Republicans and Democrats in Congress have come together to pay for what they’ve already spent, and remove the threat of default from our economy once and for all,” Mr Obama said in a statement on Wednesday.
“Hopefully, this puts an end to politics by brinksmanship and allows us to move forward to do more to create good jobs and strengthen the economy.”