The fiscal cliff debate will continue at least until March as sequestration was delayed for two months in the bill approved by the Senate.
The House is scheduled to vote later today.
The decision on the $109 billion dollars in cuts will be resolved by March when an increase in the debt ceiling and adoption of the FY2013 budget must also be resolved.
How Congress will pay for the $24 billion dollar cost in delaying the sequester is still unclear.
The Hill reported that the next fight is one the Republicans are ready for:
“We’ve taken care of the revenue side of this debate. Now it’s time to get serious about reducing Washington’s out-of-control spending. That’s a debate the American people want. It’s the debate we’ll have next. And it’s a debate Republicans are ready for,” Senate Minority Leader Mitch McConnell (R-Ky.) said early Tuesday.
Most importantly, the deal does not raise the nation’s $16.4 trillion debt limit. On Monday, the U.S. hit that limit and began taking extraordinary measures to prevent a default on government payment obligations.
In the 2011 fight over the debt ceiling, Republicans got $2.1 trillion in spending cuts and they will be demanding cuts to entitlements next time around.
The legislation keeps in place the $1 trillion dollars in sequester cuts for the next decade.
The Hill also reported:
The deal turns off two months of the $109 billion in cuts for 2013 that were to take place by the brutal process of sequestration, but in March the $85 billion in remaining cuts will hit.
Obama early Tuesday said he will look to replace the rest of the cuts with a mix of further tax increases and spending cuts.
He said “as we address our ongoing fiscal challenges, I will continue to fight every day on behalf of the middle class and all those fighting to get into the middle class to forge an economy that grows from the middle out, not from the top down.”