Washington DC - Democrats and Republicans on Tuesday reached a deal to keep federal agencies funded and operating through mid-March, averting a costly government shutdown before the holidays.

The so-called "continuing resolution" – expected to be the last major bill Congress passes this year – must be adopted in the Republican-led House of Representatives before heading to the Senate, which has to vote before week's end.

The compromise draft would then be sent to President Joe Biden for his signature.

The House has a rule stipulating that no bill can be considered on the floor less than 72 hours before the text is released. This means a House vote will likely come on Friday, with the Senate potentially following suit the same day.

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Negotiations had been bogged down in Congress as Republicans pushed for billions of dollars in new economic help for farmers, with the shutdown deadline fast approaching.

Democrats insisted on several of their own add-ons, including cash to cover the cost of rebuilding the collapsed Francis Scott Key Bridge in Baltimore.

The draft notably includes $100 billion in disaster aid requested by Biden, after two devastating hurricanes in September and October, as well as $10 billion in aid to American farmers.

Republicans will retake the majority in the Senate in early January when newly elected members are sworn in. Trump will return to the Oval Office on January 20.