Earlier this week, the House passed The American Tax Relief Act of 2012, which averted the dreaded fiscal cliff and accompanying tax hikes. The approved plan maintains tax cuts for individuals earning less than $400,000 per year and couples earning less than $450,000. The bill also extends unemployment insurance and delays for two months a series of automatic cuts in federal spending.

Although the agreement protects middle income families against tax increases, city officials are disappointed in the spending cuts made to important federal programs. They fear these cuts will set back the economic recovery many cities are just now beginning to experience.

For more information on how the fiscal cliff deal will affect cities, please visit the National League of Cities.