Sequestration Order for Fiscal Year 2016 Pursuant to Section 251A of the Balanced Budget and Emergency Deficit Control Act, as Amended

This order triggers automatic spending cuts (sequestration) for fiscal year 2016, requiring direct spending reductions in non-exempt budget accounts effective October 1, 2015, based on OMB calculations. The reductions follow statutory formulas from the 2011 debt ceiling deal.

Federal Register Open PDF 80 FR 6645

Impact dates

Oct 1, 2015
Sequestration takes effect; direct spending reductions begin

Key directives

Direct spending budgetary resources for FY2016 in each non-exempt budget account shall be reduced effective October 1, 2015
Sequestrations shall follow OMB report specifications of February 2, 2015
All sequestrations must comply with section 251A requirements

Who is ordered

Director of the Office of Management and Budget · Office of Management and Budget

Timeline

Immediate

OMB report issued to Congress
Presidential order signed triggering statutory mechanism

Near term (90d)

—

Long term

Sequestration takes effect October 1, 2015
Across-the-board spending cuts implemented for FY2016

Risks & tensions

Cuts are automatic and formula-driven, limiting executive discretion
Non-exempt programs face reductions regardless of policy priorities
Continues politically contentious austerity mechanism from 2011 BCA deal