But the reforms, backed by the White House, lost the support of civil liberties groups and tech companies like Google and Microsoft, after the Obama administration demanded changes to the bill that critics say watered down strict limits on collection of phone records and other personal data.
Despite an eruption of controversy in the run-up to the vote, Republicans and Democrats largely got behind the potentially historic reforms, approving the legislation 303-121.
Jim Sensenbrenner, a Republican author of the original Patriot Act that gave intelligence agencies broad powers after the September 11 2001 attacks, but who later became a critic of espionage overreach, said the bill marked a viable compromise that retained the government's ability to protect Americans security as well as civil liberties.
"The days of the NSA indiscriminately vacuuming up more data than it can store will end with the USA Freedom Act," Sensenbrenner said.
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"If the administration abuses the intent of the bill, everyone will know."
But congressman Mike Honda blasted the administration for "drastically" weakening the bill, saying it now "leaves open the possibility the bulk surveillance could still continue."
The measure is criticised as weakening public protections by changing a proposed public advocate at the secret Foreign Intelligence Surveillance court to a panel of experts that would review court decisions.
In the original bill, the National Security Agency no longer would have been allowed to use secret court orders to gather telephone data on unlimited millions of Americans.