President Joe Biden has welcomed the deal, and says it prevents “an unnecessary crisis that would have inflicted needless pain on millions of hard-working Americans” – with government employees unpaid and key services forced to close.
The US has narrowly avoided a government shutdown – with just three hours to spare before current funding expired.
A rushed package means agencies will be able to continue operating as normal for the next 45 days, ending turmoil in Washington.
However, this temporary solution has dropped aid to Ukraine – an issue that will need to be revisited with a growing number of Republican lawmakers.
Had a deal not been reached, four million government employees would have been left unpaid – with national parks and financial regulators forced to shut their doors.
Active-duty soldiers would have had to work without pay, with nutrition aid to seven million poor mothers suspended.
There could also have been knock-on effects with airport security and border control, delaying passengers.
Democratic Senate majority leader Chuck Schumer said: “The American people can breathe a sigh of relief – there will be no government shutdown … today, MAGA extremism has failed and bipartisanship has prevailed.”