The decision was approved by the Senate through a fast track, after the deadline had expired by more than half an hour past midnight.
Donald Trump, who will take office as the President of the United States in a month, stopped the negotiated deal with the opposing Democratic Party on Wednesday. He demanded, backed by tech billionaire Elon Musk, that his party colleagues renegotiate the budget.
The now-approved proposal, presented by Republican Speaker Mike Johnson, however, does not meet Trump's sudden demands to abolish or raise the US debt ceiling.
This was Johnson's third attempt to persuade the most die-hard Trump loyalists to pass the budget, which has raised questions about whether he will be able to cooperate with Trump and keep his job.
Afterwards, Johnson claims that Trump understood "exactly what we did and why".
I think he was really happy with the result too, says Johnson.
The ongoing US Congress meeting is entering its final stage. The next two-year meeting opens on January 3, and the same day, the Speaker election will be held, a position that until now has been considered vital for Johnson.
Democrat Hakeem Jeffries says that they have managed to stop extreme Republicans from "crashing the economy and harming the working class".
US President Joe Biden subsequently signed the agreement.
