US President Joe Biden signed a funding bill worth an astounding $1.2 trillion on Saturday to ensure the continued operations of crucial federal agencies, thereby averting a potential crippling government shutdown.

The matter is of significance as the bill represents the largest and most contentious portion of federal funding since 2021 when Congress approved a $2.3 trillion spending bill for the Consolidated Appropriations Act.

The funding bill was approved by the lower House on Friday in what many news outlets described as a highly intense session. Money was running out for most agencies, including defense and homeland security, whilst the Senate was racing against time to send the bill to the White House for final approval. 

Senators were on the verge of adjourning without reaching a deal on scheduling a vote, which would have prompted the White House Office of Management and Budget (OMB) to commence scaling back operations in key federal agencies on Saturday morning.

Nevertheless, a last-minute agreement materialized just as the midnight deadline approached, and the Senate voted to pass the resolution after 2:00 am local time (0600 GMT) in Washington.

"The bipartisan funding bill I just signed keeps the government open, invests in the American people, and strengthens our economy and national security," Biden said in a White House statement.

Biden further called on lawmakers to approve additional funding for national and border security matters.

"Congress's work isn't finished. The House must pass the bipartisan national security supplemental to advance our national security interests," Biden's statement said. "And Congress must pass the bipartisan border security agreement -- the toughest and fairest reforms in decades."

"It's time to get this done."

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The potential shutdown would have impacted approximately 70% of government agencies and departments. The first 30%, which encompassed areas such as agriculture, science, veterans' programs, transportation, and housing, passed without significant issues last month.

While five of the six bills addressing the remainder of federal spending were relatively straightforward, disagreements over funding for homeland security postponed the agreement's release, initially anticipated the previous weekend.

Republican hardliners expressed frustration over the absence of more stringent border security measures in the package, as well as concerns regarding the overall cost and the rapid pace of negotiations.