The Congress on Thursday approved a $38-billion spending cut package to prevent a government shutdown, but mass defections in both parties highlighted the difficult fights ahead on spending and debt reduction.

In a bipartisan 260-167 vote, the House of Representatives passed the compromise struck last week by President Barack Obama and congressional leaders to cut spending for the current fiscal year that ends September 30. Among Republicans, 179 voted for the package and 59 against it, arguing the cuts were not deep enough.

More than half of Democrats opposed the deal, fearing they would hurt lower-income Americans. The Senate later passed the bill by an 81-19 vote and sent it to Obama for his signature, with 15 Republicans, three Democrats and one independent voting no.

A vote on raising the nation's $14.3 trillion debt ceiling and the 2012 budget debate, which has implications for the next decade, are expected to be the major issues for Congress in the next several months. Failing to raise the debt ceiling within the next few months will mean that U.S. would default on some of its obligations.

The debate is also already becoming a 2012 campaign issue. Obama made long-term debt reduction a priority on Wednesday in a speech calling for cutting $4 trillion of the budget deficit over 12 years, ensuring the issue will be a prime focus during his 2012 re-election campaign.

Boehner likewise put the spending cuts in a political context."This agreement will cut $78.5 billion from what the president wanted to spend this fiscal year. And if Republicans had not won the election in the House last November, I'll guarantee you they would have spent $78.5 billion more," he said.

IBTimes with Reuters