The US Congress passed a bill to temporarily fund government agencies until February 18, averting a government shutdown during the holiday season, the BBC reported.
The Senate of Congress passed the measure by a vote of 69:28, after it was previously passed in the US House of Representatives.
US President Joseph Biden is expected to sign the new temporary law.
"I'm glad that cool heads prevailed," said Senate Majority Leader Chuck Schumer.
The law was adopted just a few hours before the suspension of funding, which was scheduled for today.
A shutdown would mean millions of workers would go without pay ahead of Catholic Christmas and New Year, and museums and parks would be closed for the holidays.
A group of Republican senators has threatened to block passage of a funding bill in protest of Biden's push for mandatory US-wide COVID-19 vaccinations for employees at large companies.
However, Democrats blocked their attempt to file an amendment to stop the vaccination initiative.
The House of Representatives approved the funding bill earlier Thursday by a vote of 221 to 212.
This is the latest example of the political tussle over funding, which has resulted in several government shutdowns in recent years.
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