The decision means America’s statutory debt can increase by approximately $318 billion, according to the Treasury Department, with national borrowing standing at $19.84 trillion – around £15 trillion.
It passed Friday in a deal which also sees around £11billion allocated for emergency funding for Hurricane Harvey recovery efforts.
The moved, dubbed the disaster and debt deal, was an agreement between the president, House minority leader Nancy Pelosi and Senate minority leader Chuck Schumer last Wednesday.
It allowed the three-month debt-ceiling raise in exchange for quick action on Harvey aid and short-term spending.
The new legislation means the Treasury can freely borrow money until December 8.
The president of the Peter G. Peterson Foundation, Michael A. Peterson, told The Hill website this new record will force the US to pay £4.5trn in interest over the next decade.
White House spokeswoman Sarah Huckabee Sanders said in a statement: “The President appreciates Congress putting aside partisan politics and acting quickly to ensure that first responders, local officials and federal emergency management personnel have the resources they need to respond to the natural disasters impacting our nation.
“Additionally, as the damage from Hurricane Irma unfolds, it is especially important that the men and women in the Southeast and our Caribbean territories stand strong and rest assured that this Administration will always put the needs of the American people above partisan politics as usual.”
Since Trump’s inauguration in January, America’s national debt has increased by about £162 billion.