The change follows backlash from allies over Biden's earlier decision to keep the Trump-era limits -- a politically costly moment of confusion that stood out in a White House notable for its iron discipline in its first three months.
"This erases the historically low number set by the previous administration of 15,000, which did not reflect America's values as a nation that welcomes and supports refugees," Biden said in a statement.
"The new admissions cap will also reinforce efforts that are already underway to expand the United States' capacity to admit refugees, so that we can reach the goal of 125,000 refugee admissions that I intend to set for the coming fiscal year."
The program is only for refugees selected by US security and intelligence agencies from United Nations camps around the world.
The course correction was quickly welcomed by the Senate Foreign Relations Committee, which is controlled by Biden's Democratic party.
"I welcome the Biden administration's announcement that it will increase the number of refugees allowed to be resettled in the United States. This is an important step in continuing our proud, bipartisan tradition of providing refugees protection through resettlement," the committee chairman, Senator Bob Menendez, tweeted.
The American Civil Liberties Union, a powerful advocacy group, also voiced approval, saying that the country's "reputation" was at stake.
"We are pleased to see President Biden has abandoned the Trump administration’s abysmal refugee goal and recommitted to prioritizing helping people who are fleeing persecution around the globe," ACLU representative Manar Waheed said.
"We recognize that the goal may not be easy and it requires rebuilding a system that was decimated by the Trump administration, but candidate Biden promised," Waheed said. "He must fulfill that promise, lives are at stake."
