US Budget Sequestration

by Oded Eran,

Sequestration in the US budget is a process of across-the-board spending cuts, mandated by the Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 99-177). In the separate legislation of the Budget Control Act of 2011 (Public Law 112-125), one of the provisions states that failure by Congress to reduce the budget by $1.2 trillion would result in automatic spending reductions in Fiscal Years (FY) 2013-2021.

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