Sequestration Order for Fiscal Year 2013 Pursuant to Section 251A of the Balanced Budget and Emergency Deficit Control Act, as Amended

This presidential order triggers automatic across-the-board federal spending cuts (sequestration) for fiscal year 2013, mandating reductions in non-exempt budget accounts as calculated by OMB. The order implements congressionally mandated cuts under the 2011 debt ceiling agreement when deficit reduction targets were not met by the Super Committee.

Federal Register Open PDF 78 FR 14633

Impact dates

Mar 1, 2013
sequestration order effective date; OMB report to Congress

Key directives

budgetary resources in each non-exempt budget account reduced by OMB-calculated amounts
sequestration applies to new budget authority, unobligated defense balances, direct spending authority, and obligation limitations
all sequestrations made in strict accordance with OMB report specifications

Who is ordered

Director of OMB · Office of Management and Budget

Timeline

Immediate

sequestration takes effect March 1, 2013
budgetary resources reduced effective immediately

Near term (90d)

agency implementation of spending cuts
furlough notices to federal employees
reductions in federal programs and services

Long term

continued reduced funding levels through FY2013
potential lasting reductions in federal workforce and program capacity

Risks & tensions

across-the-board cuts bypass normal prioritization, potentially reducing efficient and inefficient programs equally
defense and non-defense discretionary spending both affected, creating tension between fiscal hawks and program advocates
furloughs and service reductions may have political and economic ripple effects
uncertainty about specific account-level impacts without OMB report text