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Sequestration Order for Fiscal Year 2021 Pursuant to Section 251A of the Balanced Budget and Emergency Deficit Control Act, as Amended

This order mandates automatic spending cuts (sequestration) for fiscal year 2021, requiring OMB-calculated reductions to direct spending in non-exempt budget accounts to take effect on October 1, 2020. It implements a statutory mechanism under the Balanced Budget and Emergency Deficit Control Act rather than establishing new discretionary policy.

Federal Register Open PDF 85 FR 8129

Impact dates

  1. Sequestration reductions take effect for FY2021

  2. OMB report to Congress

Key directives

  • Direct spending budgetary resources in each non-exempt budget account shall be reduced by OMB-calculated amounts on October 1, 2020
  • All sequestrations shall follow section 251A requirements and OMB report specifications

Who is ordered

Timeline

Immediate

  • OMB report transmitted to Congress dated February 10, 2020

Near term (90d)

  • Agencies prepare for October 1, 2020 sequestration implementation

Long term

  • Automatic spending reductions apply throughout FY2021 (October 1, 2020 – September 30, 2021)

Risks & tensions

  • Statutory mechanical implementation leaves minimal presidential discretion; tension between automatic cuts and program priorities
  • Potential uncertainty for agencies until OMB report specifications are finalized
Other: Sequestration Order for Fiscal Year 2021 Pursuant to Section 251A of the Balanced Budget and Emergency Deficit Control Act, as Amended · Executive Orders