Estimated Impact of Automatic Budget Enforcement Procedures Specified in the Budget Control Act

September 12, 2011

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Highlights

The Budget Control Act of 2011 (enacted on August 2 as Public Law 112-25) made several changes to federal programs and established budget enforcement mechanisms—including caps on future discretionary appropriations—that were estimated to reduce federal budget deficits by a total of at least $2.1 trillion over the 2012–2021 period. The caps on discretionary appropriations will decrease spending (including debt-service costs) by an estimated $0.9 trillion during that period, compared with what such spending would have been if annual appropriations had grown at the rate of inflation. At least another $1.2 trillion in deficit reduction was anticipated from provisions related to a newly established Congressional Joint Select Committee on Deficit Reduction. That committee is charged with proposing legislation to trim budget deficits by at least $1.5 trillion between 2012 and 2021. However, if legislation originating from the committee and estimated to produce at least $1.2 trillion in deficit reduction (including an allowance for interest savings) is not enacted by January 15, 2012, automatic procedures for cutting both discretionary and mandatory spending will take effect. The magnitude of those cuts would depend on any shortfall in the estimated effects of such legislation relative to the $1.2 trillion amount. Continue reading “Estimated Impact of Automatic Budget Enforcement Procedures Specified in the Budget Control Act”

Sequestration Cuts To Be Detailed in Report to Congress

Added 09/11/2012 – 10:28 by Kyra Kozemchak Expert

Originally published for Federal Industry Analysis: Analysts Perspectives Blog. Stay ahead of the competition by discovering more about GovWin IQ.

Following President Obama signing the “Sequestration Transparency Act” (H.R. 5872) last month, the Office of Management and Budget (OMB) is due to provide sequestration specifics in a report to Congress by September 6, 2012. The report is due to list every program and activity across the federal government that will be subject to funding cuts. With the end of the current fiscal year approaching, agencies and contractors are eager for any additional insight into what next year may have in store. Continue reading “Sequestration Cuts To Be Detailed in Report to Congress”