tara mergener is in washington with more. tara, good morning to you. >> good morning, terrell. the standoff over the fiscal cliff is finally over. many house republicans and even some democrats did not like this bill, but enough ultimately relented. after months of debating and back room deals, congress has passed a bill which will pull the country back from the fiscal cliff. >> on this vote the yays are 257. the nays are 167. >>> the bill extends the bush-era tax rates for individuals earning $400,000 per year and couples $450,000. it also delays across-the-board spends cuts. >> i'd like to speak for this bill but i can't. >> 151 voted against the bill because it doesn't address spending. >> what we're really doing is raising taxes to give the president more money to spend. >> president obama has promised to work with congress to find more spending cuts in the future, but he urged them not to play politics with the nation's debt limit. >> i will not have another debate with this congress over whether or not they should pay the bills that they've already racked up. >> treasury

tara mergener is in washington with more this morning. tara, good morning to you. >> reporter: good morning, terrell. well, a deal is now on the books to avert some of the impact of the fiscal cliff which technically we have gone over. now it is up to the house. in the early morning hours of new year's day, the senate began voting on a bill to avoid the so-called fiscal cliff. >> the bill as amended is passed. >> reporter: the senate voted 89-8 to avoid tax hikes for 99% of all americans. >> this shouldn't be the model for how we do things around here. but i think we can say we've done some good for the country. >> r if the bill eventually becomes law, the bush era tax cuts will be permanently extended for everyone making less than $400,000 a year. and families making less than $450,000 a year. it will also keep the alternative minimum tax for the wealthy from hitting millions of middle-class families. >> middle-class families will wake up today to the assurance that their taxes won't go up $2,200 each. >> reporter: the senate agreement de

tara mergener in washington. tara, thank you so much. >>> speaker of the house john boehner says he'll schedule a vote for reef tomorrow for the victims of superstorm sandy. many of the harsh words directed at boehner came from outraged members of his own party. marlie hall reports. >> reporter: in the rush to stop the u.s. from going over the fiscal cliff, congress let something else fall. house speaker john boehner put off a vote on a $60 billion aid package for victims of superstorm sandy. >> it's why american people hate congress. it's why they hate them. >> reporter: some of boehner's fellow republicans, especially those affected by the storm were outraged. >> americans deserve better. they forgot who to serve and why. >> reporter: boehner scrambled to repair the damage. he promised a house vote on a $9 billion package on friday and the remaining $51 billion on january 15th. that was enough for some. >> this procedure that's laid out is fully acceptable and fully satisfactory. this will give us the full $60 b

i'm tara mergener on capitol hill with the >>> confirmation hearings got under way today for senator john kerry. the massachusetts democrat has bipartisan support, and he is expected to be approved as the next secretary of state. senator kerry is noted for his experience and relationship building skills. he was nominated by president obama after his first choice, united nations ambassador susan rice withdrew her name. >>> senator kerry will undoubtedly be forced to deal with north korea while at the state department. the communist nation said today it will carry out further rocket launches and a nuclear test that would target the united states. the announcement comes one day after the united nations security council agreed to a u.s. backed resolution to censure and sanction north korea for a rocket launch last month. >>> coming up on wusa9, get a room. we'll tell but a new campaign to bring couples and their cash to d.c. >> howard? >> jc, we have sunshine now but some winds are beginning to gust. these temperatures are some kind of cold. 23 at andrews. 25 crofton. 24 centreville. i'l

tara mergener is at the capital with details of this heated hearing. >> reporter: secretary of state hillary clinton became emotional recalling the return of coffins of the bodies of ambassador chris stevens and three others to andrews air force base. >> i put my arms around the mothers and fathers, the sisters and brothers, the sons and daughters and the wives left alone to raise their children. [ voice breaking ] >> reporter: clinton accepted full responsibility for the september terrorist attack on the u.s. mission in benghazi, libya that killed four people. she also responded to criticism that the obama administration misled the public about who carried out the attack. >> the fact is, we had four dead americans! >> i understand. >> was it because of a protest or because of guys out for a walk some night who decided they would go kill some americans? what difference at this point does it make?! >> reporter: but some lawmakers were not satisfied with clinton's testimony. >> all these warnings, all these things -- we didn't have a single department of defense asset apparently availa

all right, tara mergener live in washington for us, thank you. >>> what a night! the weather cooperated for a spectacular night of fireworks along the waterfront right here in san francisco. beautiful view, big crowds jamming the embarcadero. when it was over the cars jammed all the streets in the area. everyone had to go home. although many are still here. new year's celebration was not 100% peaceful though. cbs 5 reporter cate caugiran here in san francisco where at least three revelers were wounded in shootings during the festivities. good morning, cate. >> reporter: good morning, frank. yeah. san francisco police are starting the new year looking for two suspects in two different shootings that injured three people. now, that first shooting happened at 10:40 last night. a victim was taken to the hospital after being shot in the hand. the suspect was described as an adult male. the shooting happened near fish finish at jefferson and mason. less than an hour later a 12- year-old boy and a man were shot near pier 23. the boy was hit in the foot and the man grazed

but tara mergener explains that deal did not include spending cuts, and lawmakers will soon be fighting over the debt again. >> reporter: president obama landed in hawaii this morning to resume his holiday vacation. he left washington late last night after lawmakers approved a bill that prevents a middle class tax hike and delays automatic spending cuts. congress and the white house struggled to get the deal done, and neither republicans or democrats seem pleased with the outcome. >> someone stop hitting you in the head with a hammer and you're supposed to say thank you so much for the relief. >> reporter: many voters are upset it took lawmakers so long to reach a compromise. >> i think we needed a deal. i'm not necessarily all together happy. >> reporter: the measure raises taxes on families making more than $450,000 a year and extends long-term jobless benefits for a year. but the package does not include spending cuts as many republicans voted against it. >> i would like to be speaking for this bill but i can't. >> reporter: congress steered away from this fiscal cliff at the last mi

but tara mergener reports the fate of others is still unknown. >> reporter: these former hostages say they're glad to have made it out of the algerian gas plant where they worked alive. >> we were lucky that we are still alive and everything is good. >> reporter: this hostage described being held in a room with 200 others before the algerian army launched its rescue mission. he says as his captors fought against algerian forces, he escaped out a back door. plans to evacuate u.s. survivors to other hospitals in europe. but there are hostages still inside and anywhere from 18 to 60 people. from the u.s., japan, norway, and britain. >> this is a large and complex site and they are still pursuing terrorists and possibly some of the hostages in other areas of the site. >> reporter: an al-qaeda linked terrorist group called the masked bring gay stormed the -- brigade stormed the compound wednesday in retaliation for the air strikes in mali. there are reports the group wants to negotiate a swap. two americans for two terror suspects in u.s. custody. u.s. officials are working to determine th

tara mergener is in d.c. with the upcoming showdown over the government's spending limit. tara. >> reporter: elizabeth, the deal may have saved the country from the "fiscal cliff," but few are satisfied, and congress will soon be at it again. president obama landed in hawaii this morning to resume his vacation. he left washington last night after lawmakers approved a bill that prevents a middle class tax hike and delays automatic spending cuts. congress and the white house struggled to get the deal done and neither republicans nor democrats seem pleased with the outcome. >> someone stop hitting you in the head with a hammer and you're supposed to say thank you so much for the relief. >> reporter: many voters are upset it took lawmakers so long to reach a compromise. >> i think we needed a deal. i'm not necessarily altogether happy. >> reporter: the measure raises taxes on families making more than $450,000 a year and extends long-term jobless benefits for a year. but the package does not include spending cuts and many republicans voted against it. >> i'd like to be speaking

>> tara mergener in washington this morning. thank you so much. >>> still the measure passed with bipartisan support. the deal die provided the leadership in the house. speaker john boehner and paul ryan voted yes, but house majority leader eric cantor who led a brief last-minute charge against the deal and kevin mccarthy voted no. earlier i had a chance to visit to politico's congressional reporter. we talked about how the bill got through the house and the political ramifications of sealing the deal. hughes republicans were earlier considering a deal with more spending cuts. it was different than what the senate passed. what ended up happening? kwhie did republicans change their minds? >> basically they knew if they tried to make any changes that the senate had already sent over to them it would greatly prevent getting it done. harry reid, the senate majority leader said it's going to be very, very tough. a lot of them were tired. the senators were already home and they were waiting for the house to just sign off on it. so any

>> tara mergener in washington, thank you so much.he bill also extends unemployment benefits for 2 million people. it prevents a 27% cut in fees for doctors who treat medicare patients. but many americans will see a tax hike because the bill does not affect a scheduled 2% increase in the payroll tax. it also kicked the can down the road on automatic spending cuts for the defense department and domestic programs. they've been postponed for two months. as lee cowen reports, that uncertainty has many business owners worried. >> reporter: jo ann vinute is running the numbers. her payroll is due this week. she now has a hint on what taxes to withhold from her dozen employees. that's only half her work. unresolved spending cuts are the other. >> it's very uncertain and very unnerving and very -- causes a lot of anxiety and a lot of lack of sleep. >> reporter: she's the president of golden state magnetic. a $2 million a year los angeles company that inspects, cleans and paints high-tech aircraft and aerospace parts. everything from fighter j

as tara mergener reports, congress will have new faces tackling some of the old problems. >>> reporter: there will be fresh faces and new challenges when the 113th congress is sworn in today on capitol hill. >> it's a privilege. and you realize that the hard part is still what lies ahead. >> reporter: the new term will begin almost immediately with several issues left over from the last session including a bill to provide financial relief for victims of superstorm sandy. deep spending cuts known as sequestration, tabled during the "fiscal cliff" talks this week, and a bill to increase the nation's debt limit. but it won't take much for them to surpass the previous group in terms of legislative success. >> they tell me this is the least productive congress in the history of the nation. if it's not, i would hate to be in the one that was. >> reporter: the 113th congress will be the most diverse group of representatives, especially in the democratic house caucus where white males will be in the minority for the first time ever. >> together the diversity of our caucus celebrates the streng

tara mergener for cbs news, washington. >> now, the house is set to reconvene today at 9 a.m. pacific time. a house vote is expected today or tomorrow. >>> what a night. no fog this year, perfectly clear last night for fireworks along the waterfront here in san francisco. it's beautiful out there. a lot of people showed up for the 15-minute display and jammed the streets near the bob barker. when it was all over, i think most of them are still out there, it was crowded getting into work today but there was some violence during the new year's celebration here in the city. cbs 5 reporter cate caugiran is in san francisco with the problems police had with the new year's crowd and has the latest. >> reporter: good morning. happy new year. san francisco police had their hands full because some celebrations did not go as planned. there were two separate shootings last night. now three people are recovering from gunshot wounds. the first one happened around 10:40. a victim was shot in the hand near jefferson and mason near fisherman's wharf. the second shooting happened less than an

but cbs reporter tara mergener tells us, it faces a tough fight in congress and even from top lawmen. >>> reporter: victims of gun violence joined democratic lawmakers calling for a new ban on assault weapons. >> i have a bullet still in my head. i was shot in the jaw. >> reporter: last month's school shooting in newtown, connecticut gave gun control advocates a new urgency. >> weak gun laws allow these mass killings to be carried out again and again and again. >> reporter: senator dianne feinstein displayed ten of the more than 150 assault weapons she wants to ban. her legislation would also outlaw ammunition magazines with more than 10 rounds. >> we're not trying to seize everybody's guns, but we need reasonable gun control in this country or guess what, it will happen again. [ applause ] >> reporter: this legislation goes further than the assault weapons ban that expired in 2004 and getting it to pass congress will be a very tall order. >> i have been a proud gun owner a law-abiding gun owner all my life. >> reporter: democratic senator joe manchin doesn't support a ban and worried

tara mergener live in washington, thank you. >>> well, the u.s.tes ago after most major overseas markets enjoyed positive days if the response to the house passage of the fiscal bill. our dow was up about 221 points, 13,325. we'll have the latest on this with ashley morrison and more from the rest of the business world coming up in 10 minutes. >>> our other big story the weather. it's been chilly here in the bay area. so we sent cbs 5 reporter anne makovec out in it. she is feeling the freeze in san rafael. good morning, anne. >> reporter: it is very chilly. now, i did just check with our weather producer, and he said it is 34 right now in san rafael. but the bank here behind me says that it is 28 degrees if that will pop up again so p.m. line very chilly. definitely is in the 20s to our north here. there is a freeze warning in effect for the north bay and frost advisory until 9 a.m. for the shoreline and the santa clara valley. this is some of the frost on the ground we found here in san rafael this morning. and frost can kill sensitive plants ou

tara mergener is at the white house where u.s. officials are still working to get a clear picture of what's going on on the ground. >> reporter: these former hostages are grateful algerian forces helped them escape their militant captors. >> i think they did a fantastic job, was very impressed with the algerian army. >> reporter: there is still confuse about who has made it out of the remote natural gas complex and who is missing. one u.s. official tells cbs news the fighting is over. one american is dead and nine others are safe. the state department said friday afternoon there were still american hostages. the al-qaeda linked group behind the attack offered to swap two americans for two terror suspects in u.s. custody. >> let's not forget this is an act of terror. the perpetrators are the terrorists. >> reporter: the terrorist group said it stormed the compound in retaliation for french airstrikes against militant fighters in neighboring mali, but some u.s. officials say the elaborate attack would have required a lot of planning

tara mergener is in washington this morning. tara, good morning to you. >>> terrell, the speaker changed course after an angry backlash for the delay. it's the first of two votes to send up $60 million in aid to the victims of superstorm sandy. he's trying to rebuild his home but he's run into a problem. his frustration grew when the last session of congress ended this week without acting on a bill to provide financial relief to millions of victims. >> it's like a slap in the face when you really think about, you know, the way we're being treated by the government, that they're withholding, you know, money that should have been given to us, you know, to help us rebuild. >> camarada isn't the only one. >> ask any family in lindenhurst, the rockaways, staten island, if the delays bother them and then step back after you ask the question. >> that's why people hate washington, d.c. >> speaker of the house went into debate mode. >> for whatever reason the speaker decided not to bring it to a vote this week. obviously we disagreed with

tara mergener for cbs news, washington. >>> after his address, president obama returned to hawaii toily vacation. he plans to sign the bill there. >>> most overseas stock markets rose on news that the u.s. "fiscal cliff" has been averted. the kospi exchange in south korea finished up as did major markets in hong kong, australia, germany, britain and france. here in the u.s. the new year's first day of trading begins in about an hour. we'll go there live for a look at what we can expect today with ashley morrison at 5:45. >>> people affected by hurricane sandy will have to wait for the next session of congress to learn of fate of a federal aid package. the senate already passed a $60 billion measure but the house wrapped up the session without voting on it. the new congress will be sworn in tomorrow. >>> two people are dead in san francisco after a driver crashed a car while trying to avoid police. officers tried to pull over the chevrolet impala because it matched the description of a car connected to shots fired at a san francisco housing project. >> as officers approached the vehic

tara mergener for cbs news, washington. >>> after his address, president obama returned to hawaii to finish his vacation and will sign the bill there. >>> most overseas stock markets rose on news of the u.s. "fiscal cliff" has been averted. the kospi stock exchange in south korea celebrated its first trading day in 2013. it finished up as did hong kong, australia, germany, britain and france. here in the u.s., the new year's first day of trading begins in about two hours. >>> people affected by hurricane sandy will have to wait for the next session of congress to learn the fate of a federal aid package. the senate already passed the $60 billion measure but the house ended without voting on it. the new coming will be sworn in tomorrow. >>> and as lawrence just said, it is a chilly morning in the bay area. but don't light a fire. today is a "spare the air" day for the bay area, the second one at what -- the second one in a row. air quality officials say they might have to declare another one tomorrow because of air pollution that's beyond healthy levels. >> it creates unhealthy breathi

tara mergener live on this new year's day in washington, thank you. >>> and that's how they rang in 2013. about a million people in all over the world got the times square treatment. new york's crystal ball dropped into the new year. it was cold but worth it they say to join the party. looks like the weather cooperated for a spectacular night of fireworks along the waterfront in san francisco. they jammed the embarcadero as midnight approached. when it was all over the cars jammed the streets in the area. >>> cbs 5 reporter cate caugiran is in san francisco where three revelers were wounded in shootings during the festivities. cate. >> reporter: good morning, grace. yes, police will be starting the new year looking for two suspects in two different shootings that injured three people. the first one was at around 10:40 last night. a victim was taken to the hospital after being shot in the hand. the suspect was described as an adult male. the shooting took place near fisherman's wharf at jefferson and mason. less than an hour later a 12- year-old boy and man were shot near pier 23. the boy