McConnell: Agreement reached to postpone sequester two months

Senate Republican Leader Mitch McConnellAddison (Mitch) Mitchell McConnellCollins: 'Extremely disappointing' ObamaCare fix left out of spending deal House poised to vote on .3T spending bill Budowsky: Stop Trump from firing Mueller MORE (R-Ky.) has told GOP colleagues that negotiators have agreed to postpone the automatic spending cuts known as the sequester for two months.

The agreement could pave the way for Senate passage of legislation to avoid the biggest parts of the so-called "fiscal cliff." But it still needs to be approved by the Senate Democratic caucus, whose members are grumbling about the details.

“Sequestration will not be implemented for two months,” said Sen. John McCainJohn Sidney McCainZuckerberg: Maybe tech should face some regulations Schiff mocks Trump: Obama, Bush didn't need staff warning 'do not congratulate' Putin GOP senator tears into Trump for congratulating Putin MORE (Ariz.), the ranking Republican on the Senate Armed Services Committee.

McCain said the $24-billion cost of delaying the sequester would be offset by other cuts so as not to add to the deficit, but those details remain unresolved.

“They haven’t ironed that out yet,” he said of the sequester.

A senior GOP aide said the question over how to pay for the sequester delay is the final remaining issue in the fiscal cliff negotiations.

McConnell announced on the Senate floor earlier in the day that he and Vice President Biden had agreed to the tax portion of the fiscal cliff. That part of the package would extend income tax rates for individual income up to $400,000 and family income up to $450,000. It would set the estate tax rate at 40 percent for inheritances over $5 million.

Senate Republican Jon Kyl (R-Ariz.) said President Obama, Senate Majority Leader Harry ReidHarry Mason ReidTrump presses GOP to change Senate rules Only thing Defense’s UFO probe proves is power of political favors Nevada Democrat accused of sexual harassment reconsiders retirement: report MORE (D-Nev.) and McConnell need to see how the agreement is drafted on paper and warned they could change their minds.

Reid, for one, has not yet signed on to the tax part of the deal, amid growing concern from members of his caucus.

“Not all the bill language is written because some of the details have just been worked out,” he said.

Kyl said negotiators need to finalize the details of the offsets for the sequester and a freeze in doctors’ Medicare payments.

“While there hasn’t been an absolute final sign-off on all of those offsets, the parties that have been doing the negotiating feel confident that they have a notional agreement,” he said. 

Republicans have started to coalesce behind the emerging agreement.

Sen. Kay Bailey Hutchison (R-Texas) said: "It's not something that any of us would say, 'Oh, I love it.' I don't love it, but I think it is a very good job of negotiating where there are some wins and some losses and it's about even." 

Centrist Sen. Susan CollinsSusan Margaret CollinsCollins: 'Extremely disappointing' ObamaCare fix left out of spending deal Overnight Cybersecurity: Zuckerberg breaks silence on Cambridge Analytica | Senators grill DHS chief on election security | Omnibus to include election cyber funds | Bill would create 'bug bounty' for State GOP lawmakers blast Dems for opposing ObamaCare fix MORE (R-Maine) said her vote would depend on the offset to the sequester delay but indicated she would likely vote yes.

“I want to wait until I see the details, including the specific spending cuts to pay for the sequester, but as far as what I’ve heard so far I’m encouraged,” she said.