Next year's cuts will occur regardless of the spending levels that Congress chooses to appropriate
UPDATED JUNE 7, 2012
By Loren Adler and Shai Akabas
We have spent a lot of space on this blog discussing the details of the Budget Control Act’s (BCA) sequester that is set to take effect on January 2, 2013, but one important aspect that has not received enough attention is the unique form that the sequester takes for fiscal year (FY) 2013.
As we explained in our previous post, the sequester is split evenly between defense programs (function 050) and non-defense programs (every budget function besides 050) for each of the nine years from 2013-2021. This works out to approximately $55 billion in annual cuts to each of defense and non-defense.
While the defense cuts fall almost exclusively on discretionary defense accounts, the non-defense cuts are distributed among discretionary programs, Medicare providers, farm programs, Affordable Care Act exchange subsidies, and other smaller mandatory programs.