Their bill must also pass the House, where a small group of Republicans are expected to join Democrats to send the bill to President Barack Obama.
The bill extends the federal borrowing limit until February 7 and funds the government to January 15.
The move comes just a day before the deadline to raise the $16.7 trillion limit.
On the floor of the Senate, Democratic leader Harry Reid called the legislation “historic”, saying it would provide time for Congress to work toward a long-term budget agreement.
“Our country came to the brink of disaster,” Harry Reid said.
Republican Senate Minority Leader Mitch McConnell, Harry Reid’s negotiating partner, said he was “confident” the government could reopen and avoid default under the proposed bill.
“Now it’s time for Republicans to unite behind other crucial goals,” Mitch McConnell said.
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