Senate Majority Whip Dick Durbin (D-IL) talked about the “fiscal cliff” and deficit reduction. He said he remained optimistic that Republicans and Democrats could agree on a solution to avoid the fiscal cliff. He added, however, that in order to reach a deal, Democrats needed to be open to Medicare and Medicaid changes, although not Social Security in the near future. 
“Fiscal cliff” referred to the impending tax increases and sequestration budget cuts at the end of 2012 if Congress failed to reach a new budget agreement.*"Sequestration," a legal procedure in which automatic budget cuts are triggered, was part of the Budget Control Act of 2011.