US President Obama. Photograph by Patty Culhane/Al JAzeera

President Barack Obama has signed a bill, previously passed by both the Senate and the House, to reopen the government and raise the federal debt limit to avoid a government default.

The last minute bill passed the Democrat-controlled Senate with 81 votes to 18, and then the Republican-controlled House of Representatives with 285 votes to 144.

Whilst the act is only a temporary measure to make available funds to keep the government open until the new year, and raising the debt limit until February 2014, the deal prevents the US government defaulting on its loans which could have had a major impact on economies around the world.

After 16 days of federal agencies in various stages of shutdown, with non-essential federal staff furloughed, the US government will now reopen, bringing hundreds of thousands of people back to work.