The Emergency Economic Stabilization Act of 2008 went through in a 263-171 vote after three hours of debating. The bill will still need to be signed into law by the president.
U.S. senators approved the reworked financial bailout package on Wednesday, which was sweetened after the House of Representatives rejected the previous version of the plan.
The Senate voted 74 to 25 in favor of the bill, which does not differ vastly from the initial proposal but introduces a host of new measures, including a clause to raise the government's guarantee on savings from $100,000 to $250,000.
The House of Representatives' rejection of the bailout plan Monday sent the stock market into a steep decline and pushed down oil prices.
The economic stabilization plan, the largest in the country's history, was intended to give the U.S. administration powers to buy devalued mortgage-related assets held by struggling financial companies and banks.
The plan, designed to prevent the current crisis from spreading to the entire U.S. economy, was designed after a wave of defaults among U.S. financial institutions, including the failure of investment bank Lehman Brothers and the Washington Mutual bank, and the government's $85 billion bailout of insurance giant AIG.
