Before Congress left for their home states, they were able to vote to fund the federal government for another few months with a Continuing Resolution (often referred to simply as the "CR"). A CR is a temporary extension of the federal budget, in this case until December 3rd, when no final agreement has been reached. Fiscal year 2011 began October 1st, but neither side of the aisle had been able to come to an agreement on bugetary cuts for that year, seen as a necessary first step in reducing the federal deficit. Extending the CR at current levels allows Congress to put off tough decisions regarding program cuts until after the midterms, an idea attractive to both Republicans and Democrats who are currently campaigning.
Upon their return, the House and Senate lawmakers will square off on the expiring 2001 and 2003 tax cuts. House leaders and the White House propose extending the tax cuts for all but those with household incomes beginning at $250,000, meaning the first $250,000 would be subject to the tax cut but amounts above that would be taxed at pre-2001 rates. Republican leaders wish to extend the tax cuts for everyone.
Read more about the Continuing Resolution and predictions on the efficacy of Congress, post-election: