Obama Cuts Vacation Short as “Fiscal Cliff” Looms

House Republicans, meanwhile, issued a statement saying "Senate must act first"

With a year-end deadline looming before the economy goes over the so-called fiscal cliff, President Barack Obama is cutting short his traditional Christmas holiday in Hawaii, planning to leave for Washington on Wednesday evening.

Obama was expected to arrive in Washington early Thursday, the White House said late Tuesday. First lady Michelle Obama and the couple's two daughters are scheduled to remain in Hawaii until Jan. 6.

In the past, the president's end-of-the-year holiday in his native state had stretched into the new year. The first family left Washington last Friday night.

Congress was expected to return to Washington on Thursday. Before he departed for Hawaii, Obama told reporters he expected to be back in the capital this week.

The House Republican leadership said Wednesday that it's now up to the Democrat-controlled Senate to come up with a bill the House can approve. They gave no hint that they intend to call lawmakers back into session unless the Senate first passes legislation.

"The House has acted on two bills which collectively would avert the entire fiscal cliff if enacted," House Speaker John Boehner and other Republican leaders wrote in a joint statement. "Those bills await action by the Senate.  If the Senate will not approve and send them to the president to be signed into law in their current form, they must be amended and returned to the House."

They added that "the lines of communication remain open" and that they will "continue to work with our colleagues to avert the largest tax hike in American history, and to address the underlying problem, which is spending."

Visit NBCNews.com for breaking news, world news, and news about the economy

Senate Majority Leader Harry Reid replied in a statement that "right now, the Senate bill is the only bill that can become law, and House Republicans owe it to middle class families to let it pass with Democratic and Republican votes."

Without action by Obama and Congress, automatic budget cuts and tax increases are set to begin in January, which many economists say could send the country back into recession. So far, the president and congressional Republicans have been unable to reach agreement on any alternatives.

Lawmakers have expressed little but pessimism for the prospect of an agreement coming before Jan. 1. On Sunday, Sen. Kay Bailey Hutchison, R-Texas, said she expects any action in the waning days of the year to be "a patch because in four days we can't solve everything."

With the collapse last week of House Speaker John Boehner's plan to allow tax rates to rise on million-dollar-plus incomes, lawmakers were increasingly worried that no deal can be reached.

They were already preparing their arguments about who is to blame if the new year comes without an agreement.

Obama already has scaled back his ambitions for a sweeping budget bargain. Before leaving the capital on Friday, he called for a limited measure that extends George W. Bush-era tax cuts for most people and staves off federal spending cuts.

The Obamas were spending the holiday at a rented home near Honolulu. On Christmas Day, the president and first lady visited with members of the military to express thanks for their service.

"One of my favorite things is always coming to base on Christmas Day just to meet you and say 'thank you,'" the president said at Marine Corps Base Hawaii's Anderson Hall. He said that being commander in chief was his greatest honor as president.

Obama took photos with individual service members and their families.

On Christmas Eve, Obama called members of the military to thank them for serving the nation, then joined his family for dinner, the White House said. The Obamas opened gifts Christmas morning, ate breakfast and sang carols.

Friends were joining the Obamas for Christmas dinner Tuesday night, the White House said.

Copyright AP - Associated Press
Contact Us