The new funding extension, which cuts spending by US$2 billion, will last through next Friday, April 15.

The Senate immediately passed the extension on a voice vote. The House of Representatives followed suit early Saturday morning.

Administration and congressional officials made clear that there would be no lapses in government funding.

In his weekly address Saturday, the president explained that the agreement meant that small businesses can get the loans they need, families can get the mortgages they applied for, "folks can visit our national parks and museums" and paychecks, including those for the military, will be delivered on time.

"This is an agreement to invest in our country's future while making the largest annual spending cut in our history," Obama said.