The Republican-led US Senate, yielding to Democratic pressure, has voted to extend for just six months key provisions of the USA Patriot Act set to expire in 10 days.
The temporary extension, approved without dissent, provides time to try to resolve differences over safeguards for civil liberties before making permanent most of the provisions Mr Bush deems vital to guard against terrorist attacks.
"I'm not going to let the Patriot Act die," Senate Majority Leader Bill Frist, a Tennessee Republican, said in explaining why he struck a deal after having earlier joined the White House in opposing such a move.
"This is a common-sense solution that gives the Senate more time to craft a consensus bill that will promote our security while preserving our freedom," said Sen Patrick Leahy, a Vermont Democrat.
Each side had accused the other of trying to score political points in the high-stakes showdown.
Mr Bush said in a statement, "I appreciate the Senate for working to keep the existing Patriot Act in law through next July, despite boasts last week by the Democratic leader that he had blocked the act."
Working against the clock to finish business for the year, senators who helped negotiate the deal voiced confidence that the House of Representatives would approve it despite earlier objections to such a short-term remedy.
"Agreements are always the product of time and place," said Sen Larry Craig of Idaho, one of a handful of Republicans who joined most Democrats last week in opposing permanent extension with a procedural roadblock.
Initially passed after the September 11th, 2001, attacks, the Patriot Act expanded the authority of the federal government to conduct secret searches, obtain private records, intercept telephone calls and take other action in the effort to track down suspected terrorists.
Democrats and other critics have complained the law gave the government too much power to pry into the private lives of Americans and that proposed changes were inadequate.