Sequestration Order for Fiscal Year 2023 Pursuant to Section 251A of the Balanced Budget and Emergency Deficit Control Act, as Amended

This presidential order triggers automatic spending cuts (sequestration) for fiscal year 2023, requiring direct spending reductions in non-exempt budget accounts effective October 1, 2022, based on calculations from an OMB report transmitted to Congress on the same date. The order implements a statutory mechanism under the Balanced Budget and Emergency Deficit Control Act rather than creating new discretionary policy.

Federal Register Open PDF 87 FR 18603

Impact dates

Oct 1, 2022
Sequestration of direct spending budgetary resources takes effect for FY2023

Key directives

Direct spending budgetary resources in each non-exempt budget account shall be reduced effective October 1, 2022
Reduction amounts calculated by OMB in its March 28, 2022 report to Congress
All sequestrations must follow section 251A of the Act and OMB report specifications

Who is ordered

Director of OMB · Office of Management and Budget

Timeline

Immediate

OMB report transmitted to Congress March 28, 2022 establishing reduction amounts

Near term (90d)

Agencies prepare for October 1, 2022 implementation

Long term

Automatic spending reductions take effect October 1, 2022 for full FY2023
Potential program disruptions or benefit reductions in sequestered accounts

Risks & tensions

Statutory trigger leaves minimal presidential discretion; order is procedural execution of existing law
Uncertainty about specific programs affected since OMB report details are not reproduced in order text
Potential for reduced services or delayed payments in affected programs without further congressional action