'Fiscal Cliff' Negotiations: Congress Reaches Agreement

Jon Karl reports the latest details from the budget battle in Washington.
1:42 | 01/01/13

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Transcript for 'Fiscal Cliff' Negotiations: Congress Reaches Agreement
Breaking news overnight from capital hill. Working into the wee hours of the morning lawmakers in the senate have reached an agreement to reverse the fiscal cliff. Abc's jonathan karl reports on the details from washington. Reporter: At long last, they finally have a deal. Late last night, vice president biden went to capitol hill to convince senate democrats to pass it. I think we'll get a very good vote tonight, but happy new year. Reporter: After a quick debate, the senate even passed it. The bill as amended is passed. Reporter: Now the big question, can it pass in the house? Technically everybody's taxes have already gone up. The tax cuts have expired. But if the bill can pass in the house in the next day or two, the tax cuts can be made retroactive. The bill, if it passes, would extend tax cuts for all workers earning under $400,000. It would prevent a big tax hike estates values at less than $5 million and it would extend unemployment benefits set to expire today for some 2 million people. Even as they closed in on that deal yesterday, congressional republicans were not happy with what they heard from president obama who held a campaign-style event at the white house. I'm going to be president for the next four years, I think. Reporter: Effectively continuing the partisans' bickering we've long seen. Time to stop the cheerleading and campaigning. I know the president enjoys heckling and having pep rallies to get congress to act instead of sitting down and negotiating. Reporter: Now the big new year's test, can it pass in the For "good morning america," jonathan karl, abc news, washington.

This transcript has been automatically generated and may not be 100% accurate.

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