US politicians reached a deal for a nearly $900bn (€788bn) Covid-19 relief package for millions of Americans as the nation struggles against the world's largest outbreak of the virus.
The package includes aid for vaccine distribution and logistics, extra jobless benefits of $300 per week, and a new round of $600 stimulus cheques - half the amount provided in cheques distributed last March under the CARES Act.
It comes after months of partisan wrangling and finger-pointing as well as last-minute negotiations that culminated in a deal politicians said they hoped to approve today.
"We've agreed to a package of nearly $900 billion. It is packed with targeted policies to help struggling Americans who have already waited too long," Republican Senate leader Mitch McConnell said in a statement.
Read More: Latest Covid-19 stories
Democratic House Speaker Nancy Pelosi and Senate minority leader Chuck Schumer confirmed an agreement had been reached with Republicans and the White House on a deal that "delivers urgently needed funds to save the lives and livelihoods of the American people as the virus accelerates".
The agreement also has $25bn in housing aid to prevent evictions and nearly $100bn to help schools and childcare facilities to reopen, a statement from Ms Pelosi and Mr Schumer said.
Congress was working under a deadline of midnight, needing to reach consensus both on assistance to hard-pressed American households and companies and on the 2021 federal budget in order to avoid a government shutdown.
Number two House Democrat Steny Hoyer said he expected the deal to pass today and then head to the Senate.
That meant it required passage of a stopgap measure - which was signed by US President Donald Trump late last night - to keep the federal government funded an extra 24 hours and avert a shutdown.
"The House will move swiftly to pass this legislation immediately, so it can quickly be sent to the Senate and then to the President's desk for his signature," Mr Schumer and Ms Pelosi said in a statement.
"With the horrifying acceleration of daily infections and deaths, there is no time to waste."
Democrats and Republicans have been trading blame for months over the failure to reach a deal on this second relief plan - and continued to do so even after the deal was agreed yesterday.
As the pandemic continues to take a record toll in US cases and deaths, the economy has been gravely battered, with jobless numbers rising in the past two weeks.
Making matters still worse, millions of Americans were set to lose jobless benefits after Christmas, even as federal moratoriums on evictions and on repayment of student loans are to expire at the end of the month.
New assistance for struggling businesses and the unemployed is seen as critical to getting the world's biggest economy back on its feet, while new vaccines offer hope that an end to the pandemic may be in sight.
The initial $2.2 trillion package passed in March was credited with preventing a much more severe economic downturn.
It included huge amounts to rescue American companies, including $377bn in grants to small businesses to pay workers and rent, $500bn for loans to larger businesses and states and nearly $600bn in tax breaks and deferrals.
But critics said too much assistance went to big corporations and not enough to ordinary Americans and small businesses.
On Wednesday, Fed chairman Jerome Powell had stressed the high risk that countless small businesses could go bust in the absence of new federal aid.
The Fed has estimated that the jobless rate will end the year at 6.7% before dipping to 5&% next year - still a long way from the 3.5% registered in February.
Meanwhile, the US President-elect Joe Biden is due to receive the Pfizer Covid-19 vaccine today.
Another vaccine, made by drug company Moderna, received US approval over the weekend and will rolled out from today.
Additional reporting: Brian O'Donovon
