WASHINGTON— Congress has passed legislation to reopen the partially-shuttered federal government and avert a potentially disastrous default on U.S. obligations, clearing the measure for President Barack Obama's promised signature.

Passage of the bill late Wednesday in the House and Senate ended a Washington-created crisis that closed much of government for 16 days. It came on the eve of the date the Treasury Department warned it would no longer be able to borrow to pay the government's bills.

The legislation was carried to passage in the House by strong support from Democrats and 87 yes votes from majority Republicans who had originally sought to use the measure to derail Obama's three-year-old health care law.

The legislation will reopen the government through Jan. 15 and permit Treasury to borrow normally through Feb. 7.

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The Dow Jones industrial average soared on the news that the threat of default was fading, flirting with a 200-point gain in morning trading.

“This is a time for reconciliation,” said Senate Majority Leader Harry Reid of the agreement he had forged with the Republican leader, Sen. Mitch McConnell of Kentucky.

McConnell said that with the agreement, Republicans had sealed a deal to have spending in one area of the budget decline for two years in a row, adding, “we're not going back.”

With files from Reuters

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