Republicans will introduce a tax bill on Monday that would raise $200bn for a $1 trillion relief package, including for veterans, and would also provide an additional $1.3 trillion in additional relief for small businesses.
President Donald Trump signed the measure into law at midnight, with Democrats saying it is a step in the right direction.
“We have a responsibility to our country and we are going to work to make sure that the next four years are better than the last four,” said House Speaker Paul Ryan, who has been pushing for a larger stimulus package since the end of the fiscal year.
Republican leaders say the legislation will help the economy bounce back from a deep recession and create thousands of new jobs.
The legislation is expected to generate the equivalent of 2.6 million jobs.