WASHINGTON (CNN) -- With bipartisan support, the House approved the fiscal cliff bill late Tuesday night after Republican leaders ultimately decided not to try and tack on an amendment to the Senate version of the legislation, which passed in the upper chamber around 2 a.m. ET Tuesday morning.
The package puts off budget cuts for two months and preserves Bush-era income tax cuts for individuals earning less than $400,000 or couples earning less than $450,000.
Shortly after the House approved the bill, President Barack Obama delivered a statement at the White House, saying he will sign the legislation.
The deal, which passed the Democratic-controlled Senate in an overwhelming 89-8 vote in the middle of the night, maintains tax cuts for individuals earning less than $400,000 and couples earning less than $450,000. Technically, it reinstates cuts that expired with the new year.
It raises tax rates for those over those levels -- marking the first time in two decades the rates jump for the wealthiest Americans.
The bill temporarily extends certain tax breaks, such as the one for college tuition, while making new tax rates permanent.
While the deal gives President Barack Obama bragging rights for raising taxes on the wealthiest Americans, it also leaves him breaking a promise.
Obama had vowed to raise tax rates for the top-earning 2% of Americans, including those with household income above $250,000.
"What I'm not going to do is to extend Bush tax cuts for the wealthiest 2% that we can't afford and, according to economists, will have the least positive impact on our economy," the president said at a news conference in November, after being asked by CNN why Americans should believe he would not "cave again this time" by allowing those Bush-era tax cuts to be extended.