Todd Harrison talked about the impact of “fiscal cliff” legislation on the remainder of the fiscal year 2013 Defense Department budget. He analyzed the American Taxpayer Relief Act, which delayed and changed the sequestration provisions.
“Fiscal cliff” referred to the automatic January 2013 tax increases and sequestration budget cuts if Congress failed to reach a new budget agreement. "Sequestration," a legal procedure in which automatic budget cuts are triggered, was agreed to in the Budget Control Act of 2011. The cuts were delayed until March 2013 as part of a “fiscal cliff” agreement.