The bill allows Congress to vote on legislation to raise the debt ceiling through a simple majority instead of the 60-vote majority.
"I just signed a bill to fast-track the process to raise our debt limit," Biden said in a statement on Friday. "The nation’s full faith and credit has always been a shared responsibility. The bipartisan support of this legislation shows that it is still possible for leaders to work across the aisle and deliver."
Earlier on Thursday, the US Senate passed the measure in a 59-35 vote. The US House of Representatives passed its own legislation on Tuesday to expedite the passage of the debt limit increase.
Congress is expected to vote on legislation to raise the debt ceiling as early as next week.