The U.S. Senate on Tuesday passed a bill raising the debt ceiling, and President Barack Obama signed it into law.
The bill was passed by 74 votes to 26.
The House of Representatives passed the bill on Monday by a 269-161 vote.
The bill calls for $2.1 trillion in spending cuts spread over 10 years and raises the borrowing limit by enough to last into 2013.
The bill overcame its biggest obstacle late on Monday, when the Republican-led House of Representatives passed the measure despite opposition from both conservatives, who wanted more spending cuts, and liberal Democrats angered by proposed hits to programs for the poor.
President Barack Obama had to concede his core demand, the end to tax privileges for the rich, to strike the deal with the Republicans.