The legislation, which initially drew mixed reviews in Poland's bicameral parliament, eventually passed the upper house in a 98-0 vote with two abstentions on Thursday, state news agency PAP reported.
It now goes to President Andrzej Duda for signing into law.
The bill had caused rifts within both the opposition and Poland's conservative ruling coalition, drawing criticism from most deputies from Solidarna Polska, a junior partner in government.
The Solidarna Polska party came out against ratifying the recovery plan, concerned that a mechanism tying the payout of EU funds to the observance of the rule of law could be used by Brussels to interfere in Polish domestic affairs and encroach on the country's sovereignty.
The bill eventually made it through the lower house with the support of a group of opposition lawmakers in early May.
The legislation is essential for the country to receive more than EUR 23 billion in subsidies and over EUR 34 billion in loans from the European Union’s massive COVID-19 recovery fund.
EU member states in December gave the green light for the bloc to borrow EUR 750 billion (USD 906 billion) and provide a cash injection for economies left reeling by the coronavirus crisis.
For the ambitious plan to be put into action, all 27 EU member states need to ratify a decision to increase the bloc's resources.
(gs)
Source: PAP/IAR