“As you are likely aware, the Administration and Congress are continuing to work to resolve a series of economic or fiscal events, collectively referred to as the “fiscal cliff,” that are scheduled to occur around the end of the year. One of the key issues involves potential across-the-board reductions in Federal spending- also known as “sequestration”-which were put in place by the Budget Control Act of 2011. Under current law, these reductions are scheduled to take effect on January 2, 2013. Many of you have raised questions regarding the impact of a potential sequestration for the Department of the Treasury, and I would like to take a moment to clarify a few things,” the memo begins.

“First and foremost, it is important to keep in mind that the Administration remains focused on working with Congress to reach agreement on a balanced deficit reduction plan that avoids such cuts. Sequestration was never intended to be implemented, and there is no reason why both sides should not be able to come together and prevent this scenario.”