Without the increase in the debt ceiling, the U.S. Treasury had estimated it would run out of money to pay the nation's bills by Oct. 18.
The $480 billion increase in the borrowing limit signed by Biden is expected to be exhausted by December 3.
The House quickly passed the $480 billion increase in the country's borrowing ceiling on Tuesday, following the Senate’s approval of a party-line vote so Biden could sign it into law this week.
The approval came after a protracted standoff with Senate Republicans, who derailed initial Democratic efforts with filibusters, delays that required 60 votes to halt. The vote was 219-206, with only Democrats voting affirmatively.
Ultimately, numerous Senate Republicans agreed to join Democrats and voted to end GOP delays and move to a final vote on the legislation, but Minority Leader Mitch McConnell has vowed Republicans will offer no support for another increase in December.
In the run-up to the vote, House Rules Committee Chairman Jim McGovern bashed Republicans for resisting pushing up the debt limit. 'What we're doing here is paying for the bills that Donald Trump and the Republicans accumulated,' McGovern stated on the House floor. 'It's like my Republican friends went to a fancy restaurant, drank champagne, ate caviar and ran out of the restaurant before paying the bill.'
Treasury Secretary Janet Yellen previously warned that the U.S. would hit its borrowing limit Monday, an unprecedented situation that she and others cautioned could lead to economic catastrophe for a nation still reeling from a global pandemic.
Routine government payments to Social Security beneficiaries, disabled veterans and active-duty military personnel would potentially be pushed off, and the economic fallout in the U.S. could ripple through global markets.
The passage of the short-term debt ceiling increase ensures that, for the time being, the U.S. will continue to meet its obligations. But it sets up another potential cliff at the end of the year - at a time when lawmakers will also be working to pass a federal funding bill to avert a government shutdown.
The clash between the two parties leaves Congress without a clear solution to avert the next default deadline in December, but the White House has emphasized it is still pursuing a bipartisan increase.
Lawmakers from both sides of the aisle have used the debt ceiling votes as leverage for other priorities.
House Speaker Nancy Pelosi threatened to vote against raising the debt ceiling when President Donald Trump was in office, declaring she had no intention of supporting lifting the debt ceiling to enable Republicans to give another tax break to the rich.