UPDATE: THE US "fiscal cliff" crisis has been averted as the House of Representatives approved the deal set out by the Senate.

The bill was approved by the House in a 257-167 vote and now goes to President Barack Obama's desk for signature.

It avoids tax hikes for most Americans and delays automatic spending cuts.

The Senate passed the bill less than 24 hours earlier.

The measure raises tax rates on incomes over $US400,000 for individuals and $US450,000 for couples, a victory for Obama.

It also extends expiring unemployment benefits for the long-term jobless, prevents a cut in fees for doctors who treat Medicare patients and cancels a $US900 pay increase due to lawmakers in March.

Another provision is designed to prevent a spike in milk prices.

In the end, the House voted 257 votes to 167 to pass the original bill with minority Democrats joining a smaller number of majority Republicans to pass the legislation after a bitterly contested and unusual session on New Year's Day.

President Barack Obama planned to make brief remarks at the White House within minutes of passage of the deal, which relieved investors who feared that continued logjam could have sent global stock markets spinning.

Had the deal splintered, all Americans would have been hit by tax increases and the spending cuts would have kicked in across the government, in a combined $US500 billion ($A483.44 billion) shock that could have rocked the fragile recovery.

The House vote took place after a conservative rebellion fizzled when it became clear there were not sufficient votes in the restive Republican caucus to send an amended version of the bill with spending cuts back to the Senate.

Republican party leaders ultimately feared they would carry the can if the deal collapsed, leaving Americans enraged by higher taxes and the prospect that an economy slowly recovering from crisis could be plunged back into recession.