The move, backed by both Republican and Democratic leaders, allows the Treasury to spend up to US$700bn buying bad debts from ailing banks in the US.

President George W Bush announced his support of the bill. Both houses of Congress are expected to vote on it in the coming days.

The announcement came after days of high-level wrangling between Republicans and Democrats in Congress over the content of the bill. Both parties had vigorous objections to a proposal submitted last week by Treasury Secretary Henry Paulson that would have given him sweeping powers over how the money was spent.

House Speaker Nancy Pelosi, D-Calif., said she hopes the House will take up the bill on Monday. Sen. Majority Leader Harry Reid, D-Nev., said he believes the Senate can move on the legislation by Wednesday.