The US House of Representatives voted just after 4am to avert the US "fiscal cliff" sparing most Americans from tax hikes, spending cuts and the threat of a US recession in 2013.
President Barack Obama is expected to quickly give his signature to the measure. The 257-167 vote relied heavily on Democratic votes to win passage. It ended hard-fought negotiations over tax rates.
But it leaves many budget issues unresolved before another fiscal deadline in about two months - the need to raise the federal borrowing limit.
America's financial crisis has been averted, not solved. We've had the fiscal cliff. Now get ready for the debt abyss.
Democrats and Republicans have so far failed to agree on an alternative plan to the tax increases and spending cuts scheduled for January 1.