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Budget sequestration

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420: 434: 153:. The White House acknowledged that the new Medicare prescription drug benefit plan would not meet the PAYGO requirements. The PAYGO system was reestablished as a standing rule of the House of Representatives (which does not have the force of law) on January 4, 2007 by the Democratic-controlled 110th Congress, but less than one year later, facing widespread demand to ease looming tax burdens caused by the 239:
The BCA column shows the discretionary caps in the original Budget Control Act, as estimated in 2012. (Some of the automatic spending reductions target mandatory spending, leading to some fluctuation in estimates of the discretionary funding.) The actual caps, as modified by subsequent legislation,
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in exchange for $ 2.4 trillion in deficit reduction over the following ten years. This total included $ 1.2 trillion in spending cuts identified specifically in the legislation, with an additional $ 1.2 trillion in cuts that were to be determined by a bipartisan group of Senators and Representatives
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would produce a plan to reduce deficits by $ 1.2 trillion over 10 years, and Congress would enact it by January 15, 2012; if this did not happen, "automatic enforcement procedures" would impose a lower set of caps. Because the Joint Select Committee on Deficit Reduction did not come to agreement on
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Beginning in 1998, in response to the first federal budget surplus since 1969, Congress started enacting, and the President signing, increases in discretionary spending above the statutory limit using creative means such as advance appropriations, delays in making obligations and payments, emergency
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that exceeds these caps, an across-the-board spending cut is automatically imposed on these categories, affecting all departments and programs by an equal percentage. The amount exceeding the budget limit is held back by the Treasury and not transferred to the agencies specified in the appropriation
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Budget sequestration was first authorized by the Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA, Title II of Pub. L. 99-177). This is colloquially referred to as the Deficit Control. They provided for automatic spending cuts (called "sequesters") if the deficit exceeded a set of
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The Sequestration Transparency Act of 2012 (Pub. L. 112-155) requires the president to submit a report to Congress on a potential sequestration which may be triggered by the failure of the "Super Committee" to propose and for Congress to enact, a plan to reduce the U.S. Federal Budget by $ 1.2
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and included the sequestration as a disincentive to be activated only if Congress did not pass deficit reduction legislation. However, the committee did not come to agreement on any plan, activating the sequestration plan. The sequestration was to come into force on January 1, 2013 and was
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trillion as required by the Budget Control Act. The report – which was issued September 14, 2012, and was close to 400 pages long – provided the warning that "sequestration would be deeply destructive to national security... and core government functions".
130:(OBRA '90), by statutory requirement, if legislation enacted during a session of Congress had the effect of increasing the projected deficit for the following year, a sequestration would be triggered. These rules were in effect from FY1991-FY2002. Enacted in 1990, it was extended in the 215:. The bill also lowered the sequestration cap for 2014 to offset the two-month delay in 2013. Also, for 2013 only, certain "security" funding such as homeland security and international affairs were included in the sequestration cut in order to lessen the cuts to defense. 161:
passed during the Bush administration, which included revenue reducing provisions and increases in spending that increased the deficit. At the beginning of the 111th Congress, PAYGO was modified by including an "emergency" exemption, which was provided for the
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increased the sequestration caps for fiscal years 2014 and 2015 by $ 45 billion and $ 18 billion, respectively, in return for extending the imposition of the cuts to mandatory spending into 2022 and 2023, and miscellaneous savings elsewhere in the budget.
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designations, and specific directives. While staying within the technical definition of the law, this allowed spending that otherwise would not be allowed. The result was emergency spending of $ 34 billion in 1999 and $ 44 billion in 2000.
200:. The Super Committee failed to reach an agreement. In that event, a trigger mechanism in the bill was activated to implement across-the-board reductions in the rate of increase in spending known as "sequestration". 123:
From 1990 until 2002, and again since 2010, Congress has operated under a system called PAYGO, under which any new government spending needs to be offset by savings from (or cuts to) current programs.
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The Budget Control Act of 2011 set limits on discretionary spending, with separate pools for defense and non-defense spending. The act specified one set of caps to be enforced if the
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In 2011, sequestration was used in the Budget Control Act of 2011 (Pub. L. 112-25) as a tool in federal budget control. This 2011 act authorized an increase in the
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referring to the seizing of property by an agent of the court, to prevent destruction or harm, while any dispute over said property is resolved in court.
1073: 82: 163: 28:. Sequestration involves setting a hard cap on the amount of government spending within broadly defined categories; if Congress enacts annual 496: 145:
The PAYGO statute expired at the end of 2002. After this, Congress enacted President George W. Bush's proposed 2003 tax cuts (enacted as the
105: (1986) and Congress enacted a reworked version of the law in 1987. Gramm-Rudman failed, however, to prevent large budget deficits. The 232: 551:
The Budget and Economic Outlook: Fiscal Years 2004-2013, Appendix A, The Expiration of Budget Enforcement Procedures: Issues and Options
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fixed deficit targets. The process for determining the amount of the automatic cuts was found unconstitutional in the case of
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is a provision of United States law that causes an across-the-board reduction in certain kinds of spending included in the
796: 44:(BBEDCA) designed to keep Federal deficits below a maximum level limit. The hard caps were abandoned and replaced with a 602: 582: 483:
Spar, K. (October 2, 2012). Budget "sequestration" and selected program exemptions and special rules. Retrieved from
391: 379: 366: 349: 336: 319: 306: 289: 272: 259: 876: 824: 846:"Clearing Up Misunderstandings: Sequestration Would Not Be Tougher on Defense Than Non-Defense Programs in 2014" 766: 106: 49: 358: 298: 219: 158: 186: 25: 674: 170: 135: 212: 182: 66: 53: 548: 773: 236:
any plan, the lower caps went into effect. The values in the table below reflect these lower caps.
801: 154: 562:"H.R. 1 [108th]: Medicare Prescription Drug, Improvement, and Modernization Act of 2003" 211:, which was passed by both houses of Congress on January 1, 2013 as a partial resolution to the 99: 696: 425: 40:
The term "budget sequestration" was first used to describe an enforcement procedure of the
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H.R. 4954 - Medicare Modernization and Prescription Drug Act of 2002 sent on 27 June 2002
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The start of the sequestration was delayed from January 2, 2013 to March 1, 2013 by the
829: 102: 29: 774:"OMB Report Pursuant to the Sequestration Transparency Act of 2012 (Pub. L. 112-155)" 459: 157:, Congress abandoned its pay-go pledge. The point of order was also waived for the 90: 52:, which was in effect until 2002. Sequestration was later included as part of the 589: 439: 845: 747:"The $ 995 billion Sequester Cut Is Actually a $ 110 Billion Spending Increase" 1058: 1067: 626:"The New Pay-As-You-Go Rule In The House Of Representatives By Richard Kogan" 484: 776:. Executive Office of the President of the United States. September 14, 2012 192: 720:"Dewonkify – Offset: A Funding Source Used to Pay for Government Spending" 998: 973: 948: 433: 898: 844:
Friedman, Joel; Kogan, Richard; Parrott, Sharon (September 18, 2013).
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U.S. legislative procedure reducing spending by the Federal Government
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http://www.cbo.gov/ftpdoc.cfm?index=4032&type=0&sequence=7
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United States Congress Joint Select Committee on Deficit Reduction
751: 825:"Senate Passes Legislation to Allow Taxes on Affluent to Rise" 151:
Medicare Prescription Drug, Improvement, and Modernization Act
603:"House Approves Democratic 'Pay-Go' Spending-Control Measure" 118: 45: 462:. Department of Political Science, Auburn University. 2005 42:
Balanced Budget and Emergency Deficit Control Act of 1985
797:"Breaking – White House Releases Sequestration Report" 744: 924:"CBO Final Sequestration Report for Fiscal Year 2012" 147:
Jobs and Growth Tax Relief Reconciliation Act of 2003
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Congressional Budget Office reports on sequestration
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known as the "Super Committee" or officially as the
675:"Pay Go, Pay Gone: AMT Drives Senate Dems to Blink" 999:"Final Sequestration Report for Fiscal Year 2016" 974:"Final Sequestration Report for Fiscal Year 2014" 949:"Final Sequestration Report for Fiscal Year 2013" 452: 1065: 901:. Congressional Budget Office. December 11, 2013 33:bills. The word sequestration was derived from 929:. Congressional Budget Office. January 12, 2012 860: 672: 226: 164:American Recovery and Reinvestment Act of 2009 542: 126:In the initial PAYGO regimen, enacted in the 745:Gregory, Paul Roderick (February 19, 2013). 76: 976:. Congressional Budget Office. January 2014 233:Joint Select Committee on Deficit Reduction 968: 966: 918: 916: 866: 1074:Terminology of the United States Congress 951:. Congressional Budget Office. March 2013 176: 132:Omnibus Budget Reconciliation Act of 1993 128:Omnibus Budget Reconciliation Act of 1990 83:Gramm–Rudman–Hollings Balanced Budget Act 848:. Center on Budget and Policy Priorities 816: 374:$ 1,244 (Bipartisan Budget Act of 2018) 344:$ 1,070 (Bipartisan Budget Act of 2015) 314:$ 1,014 (Bipartisan Budget Act of 2013) 173:into law, making PAYGO again mandatory. 62:a Congressional debt-reduction committee 963: 941: 913: 822: 497:"H.J.RES.324 All Congressional Actions" 460:"A Glossary of Political Economy Terms" 73:delayed it until March 1 of that year. 1066: 867:Desjardins, Lisa (December 10, 2013). 794: 718:Morton, Erin Will (December 8, 2012). 717: 479: 477: 109:supplanted the fixed deficit targets. 1022: 1020: 993: 991: 823:Weisman, Jonathan (January 1, 2013). 795:Bowman, Andrew (September 14, 2012). 623: 600: 1035:U.S. Senate Appropriations Committee 837: 282:American Taxpayer Relief Act of 2012 209:American Taxpayer Relief Act of 2012 71:American Taxpayer Relief Act of 2012 673:Anonymous says (December 7, 2007). 624:Kogan, Richard (January 12, 2007). 474: 169:In 2010 President Obama signed the 13: 1017: 988: 869:"The budget deal in plain English" 14: 1090: 1052: 650:. Rules.house.gov. Archived from 166:during the Obama administration. 726:. Drinker Biddle & Reath LLP 601:Faler, Brian (January 5, 2007). 432: 418: 1028:"Bipartisan Budget Act of 2018" 899:"Bipartisan Budget Act of 2013" 891: 788: 738: 711: 689: 666: 640: 617: 594: 576: 554: 511: 489: 107:Budget Enforcement Act of 1990 50:Budget Enforcement Act of 1990 1: 1079:United States federal budgets 519:"Background on Pay-As-You-Go" 446: 359:Bipartisan Budget Act of 2018 329:Bipartisan Budget Act of 2015 299:Bipartisan Budget Act of 2013 220:Bipartisan Budget Act of 2013 159:Economic Stimulus Act of 2008 677:. Taxvox.taxpolicycenter.org 187:Budget sequestration in 2013 112: 7: 1003:Congressional Budget Office 404: 227:Discretionary spending caps 171:Statutory Pay-As-You-Go Act 136:Balanced Budget Act of 1997 10: 1097: 183:Budget Control Act of 2011 180: 116: 80: 54:Budget Control Act of 2011 30:appropriations legislation 588:December 1, 2020, at the 77:Gramm–Rudman–Hollings Act 802:The National Law Review 724:The National Law Review 697:"Read The Bill: H.R. 1" 155:Alternative Minimum Tax 65:considered part of the 218:In December 2013, the 177:Budget Control Act era 499:. Library of Congress 56:, which resolved the 879:on December 11, 2013 654:on December 12, 2010 648:"Committee on Rules" 426:United States portal 22:Budget sequestration 1005:. December 28, 2015 213:fiscal cliff crisis 58:debt-ceiling crisis 830:The New York Times 254:Actual (billions) 60:; the bill set up 531:on March 26, 2009 402: 401: 1086: 1047: 1046: 1044: 1042: 1037:. pp. 40–41 1032: 1024: 1015: 1014: 1012: 1010: 995: 986: 985: 983: 981: 970: 961: 960: 958: 956: 945: 939: 938: 936: 934: 928: 920: 911: 910: 908: 906: 895: 889: 888: 886: 884: 875:. Archived from 864: 858: 857: 855: 853: 841: 835: 834: 820: 814: 813: 811: 809: 792: 786: 785: 783: 781: 770: 764: 763: 761: 759: 742: 736: 735: 733: 731: 715: 709: 708: 706: 704: 693: 687: 686: 684: 682: 670: 664: 663: 661: 659: 644: 638: 637: 635: 633: 621: 615: 614: 612: 610: 598: 592: 580: 574: 573: 571: 569: 558: 552: 546: 540: 539: 537: 536: 530: 524:. Archived from 523: 515: 509: 508: 506: 504: 493: 487: 481: 472: 471: 469: 467: 456: 442: 437: 436: 428: 423: 422: 421: 243: 242: 240:are also shown. 91:Bowsher v. Synar 1096: 1095: 1089: 1088: 1087: 1085: 1084: 1083: 1064: 1063: 1055: 1050: 1040: 1038: 1030: 1026: 1025: 1018: 1008: 1006: 997: 996: 989: 979: 977: 972: 971: 964: 954: 952: 947: 946: 942: 932: 930: 926: 922: 921: 914: 904: 902: 897: 896: 892: 882: 880: 865: 861: 851: 849: 842: 838: 821: 817: 807: 805: 793: 789: 779: 777: 772: 771: 767: 757: 755: 743: 739: 729: 727: 716: 712: 702: 700: 695: 694: 690: 680: 678: 671: 667: 657: 655: 646: 645: 641: 631: 629: 622: 618: 608: 606: 605:. Bloomberg.com 599: 595: 590:Wayback Machine 581: 577: 567: 565: 560: 559: 555: 547: 543: 534: 532: 528: 521: 517: 516: 512: 502: 500: 495: 494: 490: 482: 475: 465: 463: 458: 457: 453: 449: 440:Politics portal 438: 431: 424: 419: 417: 407: 251:BCA (billions) 247: 229: 189: 181:Main articles: 179: 121: 115: 85: 79: 17: 12: 11: 5: 1094: 1093: 1082: 1081: 1076: 1062: 1061: 1054: 1053:External links 1051: 1049: 1048: 1016: 987: 962: 940: 912: 890: 859: 836: 815: 787: 765: 737: 710: 688: 665: 639: 616: 593: 575: 553: 541: 510: 488: 473: 450: 448: 445: 444: 443: 429: 414: 413: 406: 403: 400: 399: 397: 394: 388: 387: 385: 382: 376: 375: 372: 369: 363: 362: 355: 352: 346: 345: 342: 339: 333: 332: 325: 322: 316: 315: 312: 309: 303: 302: 295: 292: 286: 285: 278: 275: 269: 268: 265: 262: 256: 255: 252: 249: 228: 225: 178: 175: 117:Main article: 114: 111: 81:Main article: 78: 75: 48:system by the 26:federal budget 15: 9: 6: 4: 3: 2: 1092: 1091: 1080: 1077: 1075: 1072: 1071: 1069: 1060: 1057: 1056: 1036: 1029: 1023: 1021: 1004: 1000: 994: 992: 975: 969: 967: 950: 944: 925: 919: 917: 900: 894: 878: 874: 870: 863: 847: 840: 832: 831: 826: 819: 804: 803: 798: 791: 775: 769: 754: 753: 748: 741: 725: 721: 714: 699:. GovTrack.us 698: 692: 676: 669: 653: 649: 643: 627: 620: 604: 597: 591: 587: 584: 579: 564:. GovTrack.us 563: 557: 550: 545: 527: 520: 514: 498: 492: 485: 480: 478: 461: 455: 451: 441: 435: 430: 427: 416: 412: 409: 408: 398: 395: 393: 390: 389: 386: 383: 381: 378: 377: 373: 370: 368: 365: 364: 360: 356: 353: 351: 348: 347: 343: 340: 338: 335: 334: 330: 326: 323: 321: 318: 317: 313: 310: 308: 305: 304: 300: 296: 293: 291: 288: 287: 283: 279: 276: 274: 271: 270: 266: 263: 261: 258: 257: 253: 250: 245: 244: 241: 237: 234: 224: 221: 216: 214: 210: 205: 201: 199: 194: 188: 184: 174: 172: 167: 165: 160: 156: 152: 148: 143: 139: 137: 133: 129: 124: 120: 110: 108: 104: 101: 97: 94: 92: 84: 74: 72: 68: 63: 59: 55: 51: 47: 43: 38: 36: 31: 27: 23: 19: 1039:. Retrieved 1034: 1007:. Retrieved 1002: 978:. Retrieved 953:. Retrieved 943: 931:. Retrieved 905:December 19, 903:. Retrieved 893: 883:December 11, 881:. Retrieved 877:the original 872: 862: 850:. Retrieved 839: 828: 818: 806:. 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Cbpp.org 535:2010-12-31 447:References 69:, but the 411:Austerity 357:$ 1,208 ( 327:$ 1,067 ( 297:$ 1,012 ( 280:$ 1,043 ( 113:PAYGO era 586:Archived 405:See also 396:$ 1,146 384:$ 1,120 371:$ 1,093 354:$ 1,066 341:$ 1,040 324:$ 1,016 277:$ 1,047 267:$ 1,043 264:$ 1,043 134:and the 752:Forbes 311:$ 994 294:$ 973 246:Fiscal 1031:(PDF) 927:(PDF) 529:(PDF) 522:(PDF) 248:year 119:PAYGO 98: 46:PAYGO 1043:2018 1011:2016 982:2015 957:2015 935:2015 907:2013 885:2013 854:2013 810:2012 782:2012 760:2012 732:2013 705:2010 683:2010 660:2010 634:2010 611:2010 570:2010 505:2010 468:2012 392:2021 380:2020 367:2019 350:2018 337:2017 320:2016 307:2015 290:2014 273:2013 260:2012 185:and 100:U.S. 873:CNN 103:714 96:478 1070:: 1033:. 1019:^ 1001:. 990:^ 965:^ 915:^ 871:. 827:. 799:. 749:. 722:. 476:^ 361:) 331:) 301:) 284:) 138:. 1045:. 1013:. 984:. 959:. 937:. 909:. 887:. 856:. 833:. 812:. 784:. 762:. 734:. 707:. 685:. 662:. 636:. 613:. 572:. 538:. 507:. 486:. 470:. 93:,

Index

federal budget
appropriations legislation
a legal term
Balanced Budget and Emergency Deficit Control Act of 1985
PAYGO
Budget Enforcement Act of 1990
Budget Control Act of 2011
debt-ceiling crisis
a Congressional debt-reduction committee
fiscal cliff
American Taxpayer Relief Act of 2012
Gramm–Rudman–Hollings Balanced Budget Act
Bowsher v. Synar
478
U.S.
714
Budget Enforcement Act of 1990
PAYGO
Omnibus Budget Reconciliation Act of 1990
Omnibus Budget Reconciliation Act of 1993
Balanced Budget Act of 1997
Jobs and Growth Tax Relief Reconciliation Act of 2003
Medicare Prescription Drug, Improvement, and Modernization Act
Alternative Minimum Tax
Economic Stimulus Act of 2008
American Recovery and Reinvestment Act of 2009
Statutory Pay-As-You-Go Act
Budget Control Act of 2011
Budget sequestration in 2013
debt ceiling

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