Sequestration

Sequestration is a budget technique characterized by the implementation of automatic mandatory spending cuts if deficit levels exceed a certain threshold. The Budget Control Act of 2011 utilized sequestration to... more +
Sequestration is a budget technique characterized by the implementation of automatic mandatory spending cuts if deficit levels exceed a certain threshold. The Budget Control Act of 2011 utilized sequestration to encourage Congress to cut federal spending by 1.2 billion dollars. If Congress fails to make the specified funding cuts, sequestration will kick in and  automatic cuts will be made to the federal budget. A good portion of the slated cuts will come from the national security budget.  less -
News & Analysis as of

Hospitals Speak Out Against Sequestration Extension

On Wednesday, February 12, 2014, the U.S. Senate passed legislation that, among other things, would further extend Medicare sequestration by one year (until 2024) in part to avoid a reduction in military pensions. Earlier in...more

Five Cost/Price Evaluation Lessons From Recent Bid Protest Decisions

Introduction - In this era of sequestration and decreased defense spending, paying close attention to cost and price issues is of paramount importance to contractors submitting proposals to the federal government. Nine...more

Bipartisan Budget Agreement Offers Little Holiday Cheer for Transportation Funding

Don’t let anyone tell you the Bipartisan Budget Agreement (BBA) enacted this week by Congress and President Barack Obama is good for transportation. The BBA rolls back the sequester of discretionary spending scheduled for...more

Medicare Providers React To New Congressional Budget Deal

A recent Congressional budget deal, the Bipartisan Budget Act of 2013, would exclude hospitals from sequester relief. Medicare provider payment cuts would be extended through 2023, two years longer than the cuts set by the...more

New Budget Deal Can Bring Extension of Medicare Sequestration Cuts

While many in Washington, D.C. are celebrating today the unusual display of bipartisan budgetary comity as the new budget deal is announced, there is a direct and immediate adverse effect for hospitals and physicians. As...more

Capital Thinking: Budget and Appropriations

Budget Conference Committee - The Budget Conference Committee will hold its second formal meeting on Wednesday, November 13 in an effort to reach an agreement on a topline discretionary funding for FY 2014 and possibly a...more

Capital Thinking: Defense

Executive and Legislative Branch Activity - Budget and the Sequester - Last week in congressional hearings, defense officials described the negative impact the second round of sequestration will have on the...more

Cash Grant Sequester Percentage Reduced to 7.2%

Treasury has issued an updated message on sequestration on its 1603 Program website, which can be accessed below. The sequestration message specifies that the reduction percentage applicable to any Section 1603 cash grant...more

Lawmakers Reach Deal to End Government Shutdown, Raise Debt Ceiling

While the focus over the past 16 days has been on the shuttered government and the prospect of the United States defaulting on its debt obligations, there are subtexts that are relevant to the health care industry. This On...more

Q&A with West Allen: The Lasting Damage to U.S. ?Courts due to the Government Shutdown

Last July, Lewis Roca Rothgerber attorney West Allen testified before the U.S. Senate Judiciary ?Subcommittee on Bankruptcy and the Courts on the negative effects that automatic spending cuts, ?or budget sequestration, would...more

Automatic Reductions in Subsidy Payments for Certain Direct Pay Bonds will Continue for Fiscal Year 2014

Pursuant to the requirements of the Budget Control Act of 2011 and the American Taxpayer Relief Act of 2012, on March 1, 2013, President Obama signed an Executive Order reducing the budgetary authority in accounts subject to...more

Doing Business With the Government With Reduced Risk

Entering into business with the U.S. Government provides companies, including those in the automotive industry, with the opportunity to expand their business base, with tremendous potential. Even with the current budget cuts...more

The Sequester hits home

It is a sad day indeed when the government of the United States has run out of funds to pay CJA attorneys, members of the defense bar who accept assignments to represent indigent federal criminal defendants pursuant to the...more

Capital Thinking: Defense

Executive and Legislative Branch Activity - Syria - Last Wednesday, September 4, the Senate Foreign Relations Committee, after a hearing and two days of debate held during a congressional recess, passed by a...more

Renewable Energy Update -- August 30, 2013

Renewable Energy Focus - FERC Chair Jon Wellinghoff: solar 'is going to overtake everything' -- Green Tech Solar News - Aug 22: If anybody doubts that federal energy regulators are aware of the rapidly changing...more

The Congressional Appropriations Process – Rewriting the Rules

During the coming summer months, Congress will focus its attention on the appropriations process—an annual exercise that, ideally, ends with a determination of funding for the federal government for the following fiscal year...more

Energy And Environment Update -- July 1, 2013

In This Issue: Energy and Climate Debate; Congress; Administration; Department of Energy; Department of Interior; Department of State; Department of Treasury; Environmental Protection Agency; International; States; and...more

GOVCON Research Report: April — June 2013

In This Issue: - GSA SCHEDULE MATTERS - DOD OFFICE OF INSPECTOR GENERAL REPORTS - PERTINENT GOVERNMENT ACCOUNTABILITY OFFICE (GAO) AUDIT REPORTS - KEY FEDERAL ACQUISITION REGULATION (FAR) UPDATES - KEY DEFENSE...more

Federal Grant & Contract News for Nonprofits - June 2013

In June, several federal agencies described the impact the sequester had on their various grant programs, illustrating the problems with such a blunt fiscal instrument and the need for Congress and President Obama’s...more

Washington Insight - June 2013

In This Issue: - King & Spalding Partners Address Political Intelligence Industry - On the Politics of Immigration Reform - Appropriations and Sequester – Laying Down Markers - The Congressional Appropriations...more

CMS to Congress: Sequestration of Cancer Drug Reimbursement to Continue

A June 3, 2013 letter from CMS Administrator Marilyn Tavenner to Rep. Pete Sessions (R-Tex.) states that the agency does not believe it has any discretion under the Budget Control Act of 2011 to exempt Part B cancer drug...more

Capital Thinking Update - June 3, 2013

General Legislative - The Senate will convene today, Monday, June 3, at 2:00 pm and begin a period of morning business. Thereafter, the Senate will resume consideration of S. 954, the Farm Bill, provided that alfalfa...more

HUD Announces New Category of Funding To Address Housing Choice Voucher Funding Shortfalls Resulting from Sequestration

On May 23, 2013, the U.S. Department of Housing and Urban Development (HUD) issued Notice PIH 2013-12, "Implementation of the Federal Fiscal Year 2013 Funding Provisions for the Housing Choice Voucher Program," (the Notice)....more

Energy And Environment Update -- May 28, 2013

In This Issue: Energy and Climate Debate; Congress; Administration; Department Of Energy; Department Of Interior; Department Of State; Department Of Treasury; Environmental Protection Agency; Nuclear Regulatory...more

How the Sequester Could Affect Zadroga Act Benefits

For the past month or so, all the talk has been about the sequester and how it will affect some government services, such as security at airports. However, the sequester will also affect some government benefits, including...more

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