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Sequestration and the Fiscal Cliff

Apr 28, 2013

What is “Sequestration”?

Sequestration refers to automatic federal spending cuts over a 10 years period that were included in the Budget Control Act of 2011. These cuts were triggered when a bipartisan, joint select committee also established by that legislation failed to reach an agreement on at least $1.2 trillion in alternative deficit reduction actions. The Taxpayer Relief Act of 2012 delayed implementation of, but ultimately did not replace, sequestration. 

These cuts are split evenly between defense and non-defense discretionary spending, and exempt most programs intended to serve low-income Americans and seniors, including Social Security. Sequestration cuts affect almost all industries and sectors funded by the federal government. A White House report detailed potential spending cuts due to sequestration.

Click here for more information on how sequestration will affect different nonprofit sectors.

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