Sequestration Order for Fiscal Year 2026 Pursuant to Section 251A of the Balanced Budget and Emergency Deficit Control Act, as Amended

This presidential order triggers automatic across-the-board spending cuts (sequestration) for fiscal year 2026, effective October 1, 2025, applying to all non-exempt budget accounts based on calculations in an OMB report transmitted to Congress on the same day. The cuts are mandated by the Balanced Budget and Emergency Deficit Control Act and implemented according to OMB's specifications.

Federal Register Open PDF 90 FR 24045

Impact dates

Oct 1, 2025
Sequestration reductions take effect for FY2026

Key directives

Direct spending budgetary resources in each non-exempt budget account shall be reduced effective October 1, 2025
All sequestrations shall follow section 251A of the Act and OMB's May 30, 2025 report specifications

Who is ordered

Director of OMB · Office of Management and Budget

Timeline

Immediate

OMB report transmitted to Congress May 30, 2025
Presidential order issued

Near term (90d)

Agencies prepare for October 1, 2025 sequestration implementation
OMB finalizes precise account-level reductions

Long term

Automatic spending reductions take effect October 1, 2025 for full FY2026
Potential program disruptions if Congress does not intervene to modify or cancel sequestration

Risks & tensions

Uncertainty about which specific programs are 'non-exempt' and magnitude of cuts absent published OMB report text
Potential for congressional action to override sequestration before October 1, 2025
Automatic cuts may disrupt program operations without agency discretion to prioritize
Legally mechanical implementation reduces presidential/congressional flexibility