The US Senate overcame its divisions on Thursday and voted to approve a $170bn (€117bn, £87bn) economic stimulus plan that lies at the heart of the Bush administration’s efforts to avert a recession.

A compromise deal was reached after Senate Democrats, who hold the majority, agreed to drop demands that the package include an extension of unemployment insurance, assistance for home heating, and tax credits for renewable energy. Republican opposition to those provisions had prevented the plan from advancing by one vote on Wednesday night.