In his first address to the country from the Oval Office, President Joe Biden said that increasing the US borrowing ceiling prevented a “economic collapse”.
On Saturday, when the package easily passed Congress with support from both parties, he promised to sign it into law.
The Democratic president gave his Republican counterparts some rare plaudits, claiming that they “operated in good faith.”
He described a US debt default after the deadline next week as “catastrophic” on its $31.4 trillion (£25 trillion) of debt.
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Major events like war or natural catastrophes are often the only occasions when the president addresses the nation from the Oval Office.
Republicans and the White House had been debating the specifics of an agreement for weeks, and there was doubt as to whether it would be completed before the US government ran out of money on June 5.
A day after handily passing the House of Representatives, the bill was approved by the Senate on Thursday night, 63-36.
The speaker of the house, Kevin McCarthy, was praised by the president for their ability to coexist in an open and respectful manner.
Mr. Biden commended Republican Senate leader Mitch McConnell in addition to Democratic legislative leaders, saying that both had put the interests of the nation above party politics.
Along with capping non-defense spending and suspending the debt ceiling until January 1, 2025, the agreement also increases employment requirements for food and medical assistance.
In keeping with President Biden’s request, full funding for the medical care of war veterans will also be increased.
The independent Congressional Budget Office predicted on Tuesday that the law will save $1.5 trillion over the next ten years.
Despite the fact that the legislation was mostly nonpartisan, some Republicans felt the cuts were not severe enough, while some Democrats felt they were excessive.
