Senate leaders on both sides of the US political divide have reached a deal to avoid financial default and end the government shutdown.
Democratic leader Harry Reid made the announcement at the start of the Senate session.
The deal would reopen the government until January 15 and increase the nation’s borrowing authority until February 7.
Mr Reid thanked Republican leader Mitch McConnell for working out an agreement.
Earlier both had been optimistic of reaching a deal that worked.
Driving the urgency was not only the calendar but also fears that financial markets would plunge without a settlement Politicians were also concerned voters would punish them in next year’s congressional elections. Polls show the public more inclined to blame Republicans.
Republican Senator Ted Cruz, who had been leading the opposition trying to attach conditions affecting president Barack Obama’s healthcare reforms to any budget deal, said he would not delay a vote on the bipartisan budget deal.
Mr Cruz added that he would vote against the bipartisan bill but would not use delaying tactics to stall the legislation.
The Texas senator has won praise from the right-wing tea party and other conservatives for his actions.
The White House urged quick congressional approval of the deal.
White House spokesman Jay Carney said the deal reached by Senate leaders “achieves what’s necessary” to reopen the government, remove the threat of default and move past brinksmanship.
Mr Carney said the agreement is bipartisan and that President Barack Obama is looking for Congress to act so he can sign it and remove the threat to the economy.
Mr Obama’s spokesman praised Senate Majority Leader Harry Reid and Senate Republican leader Mitch McConnell for working together.