Fiscal Cliff Deal: No Comfort to Feds
January 7, 2013
The fiscal cliff deal, struck last week, delayed steep sequestration budget cuts for two months, but it does virtually nothing to solve the major problems facing federal employees.
Instead, it sets the stage for a series of new “cliffs” within the next couple of months: a needed increase in the nation’s debt ceiling by late February; steep sequestration budget cuts due to hit March 1; and the March 27 expiration of the current government spending bill.
The bitter political fights likely to result could deal severe setbacks to federal employees, including furloughs, layoffs, a continued pay freeze, hiring freezes, cuts to benefits and possibly a government shutdown.