Senator John McCain, whose fellow Republicans triggered the crisis with demands that the Democratic president's "Obamacare" healthcare reform law be defunded, said earlier on Wednesday the deal marked the "end of an agonizing odyssey" for Americans.
Although the deal would only extend U.S. borrowing authority until Feb. 7, the Treasury Department would have tools to temporarily extend its borrowing capacity beyond that date if Congress failed to act early next year.
In addition to lifting the federal debt limit, the deal calls for creating a House-Senate bipartisan panel to try to come up with long-term deficit-reduction ideas that would have to be approved by the full Congress. Their work would have to be completed by Dec. 13.
The agreement also includes some income verification procedures for those seeking subsidies under the 2010 healthcare law. But Republicans surrendered on their latest attempt to delay or gut the healthcare package or include major changes, including the elimination of a medical device tax.
The congressional vote signaled a temporary ceasefire between Republicans and the White House in the latest struggle over spending and deficits that has at times paralyzed both decision-making and basic functions of government.
The political dysfunction has worried U.S. allies and creditors such as China, the biggest foreign holder of U.S. debt, and raised questions about the impact on America's prestige. The Treasury has said it risks hurting the country's reputation as a safe haven and stable financial center.
Reid and McConnell announced the fiscal agreement on the Senate floor earlier in the day, and its passage was eased when the main Republican critic of the deal, Senator Ted Cruz of Texas, said he would not use procedural moves to delay a vote.
The agreement is a victory for Obama, who held firm and refused to negotiate on changes to the healthcare law, and a defeat for Republicans who have suffered a backlash from the American public, according to public opinion polls.
There was no immediate sign that House Speaker John Boehner's leadership position was at risk. Several Republican lawmakers suggested he may have strengthened his standing among the rank-and-file, who gave him a standing ovation at an afternoon meeting.
The fight over Obamacare rapidly grew into a brawl over the debt ceiling, threatening a default that global financial organizations warned could throw the United States back into recession and cause a global economic disaster.
Fitch Ratings had warned on Tuesday that it could cut the U.S. sovereign credit rating from AAA, citing the political brinkmanship over raising the debt ceiling.
A resolution to the crisis cannot come soon enough for many companies. American consumers have put away their wallets, at least temporarily, instead of spending on big-ticket items like cars and recreational vehicles.
HOW ILLINOIS LEGISLATORS VOTED
Illinoisans' roll-call votes Wednesday on the bipartisan deal to end the partial government shutdown and raise the debt ceiling:
Democrats yes: Bustos, D. Davis, Duckworth, Enyart, Foster, Gutierrez, Kelly, Lipinski, Quigley, Schakowsky, Schneider
Republicans yes: R. Davis, Kinzinger, Roskam, Schock, Shimkus
Republican no: Hultgren
Democrat not voting: Rush
Democrat yes: Durbin
Republican yes: Kirk