Continued Uncertainties Surround Sequestration
February 13, 2013
In his recent State of the Union address, President Obama urged Congress to adopt an alternative to the sequestration cuts scheduled to take effect on March 1, 2013. Although Republicans and Democrats in Congress have previously offered proposals to avert the cuts, the parties remain deadlocked over whether the sequestration cuts should be replaced by a plan that involves strictly cost-cutting measures or a plan that involves new tax revenue as well as cost-cutting measures. Due to the deadlock, many members of Congress suggest that sequestration is inevitable and some members even perceive the cuts as the only real way to reduce the deficit. In addition to sequestration, agencies are further limited by the threat of future budget cuts. Agencies have developed plans to dramatically cut costs and the Department of Defense has even begun to implement cost reduction measures. Regardless of what happens on March 1, one thing is certain— federal reductions in spending are imminent.