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... 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.
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On March 26, 2013, President Obama signed the Continuing Resolution, which will fund government operations through the end of Fiscal Year 2013 or September 30. While this may assuage some of the uncertainty of...more
Pursuant to the Budget Control Act of 2011, sequestration is the process by which automatic across-the-board spending cuts are being imposed on government programs. Because Congress was unable to reach an agreement by its...more
One of King & Spalding’s clients reported to us that its Medicare contractor had not correctly calculated the 2 percent sequestration reduction in payments for purposes of biweekly pass-through payments. ...more
On March 21, 2013, the House of Representatives approved a spending bill that would provide funding for the federal government through September 30. The Senate had already passed the bill and President Obama is expected to...more
On March 1, 2013, President Obama signed the order directing “sequestration” to go into effect. As has been repeated constantly leading up to sequestration, $85 billion will now be cut from the federal government’s budget...more
In This Issue: - Letter From the Editor - Tips for Presenting, Analyzing and Resolving Delay and Impact Claims - The Ever-Shrinking Federal Budget: Preparing for Contract Cut-Backs - Colorado Court of...more
Automatic spending cuts caused by “sequestration” went into effect on March 1, 2013, after the federal Government could not avoid or further delay sequestration as Congress and the President had agreed during January of 2013....more
On March 1, 2013, President Obama ordered the implementation of across-the-board cuts – sequestration – primarily directed to military and domestic discretionary spending because the White House and congressional leaders...more
As sequestration and the spending cuts that come with it stand to impact nearly all Americans, the effect is even more direct for the government contractors who rely on that spending to get paid. So as government procurement...more
Today, the President issued a Sequestration Order that requires federal agencies to make uniform percentage reductions in each separate item in their budgets. Under that Order, the agencies will be obliged to apply a...more
March 1 has arrived without a budget compromise in Washington, DC. Barring a last minute deal before midnight tonight, across-the-board federal budget cuts are expected to go into effect. For employers, this will bring with...more
If Congress and the White House do not reach a deal on the sequestration, employers with federal contracts should be prepared to take immediate action to deal with drastic cuts in government spending that will result....more
Current reports from Congress suggest that “sequestration” will likely take effect as early as March 1, 2013. The sequestration is a key part of the Budget Control Act of 2011, which requires the federal government to...more
In this LEVICK daily video interview, we discuss the potential consequences of sequestration and budget uncertainty with Alan Chvotkin, an Executive Vice President and Counsel for the Professional Services Council. With less...more
Sequestration is slated to start January 2, 2013. Under the terms of the Budget Control Act of 2011, OMB must trim $1.2 trillion evenly from the budgets of civilian agencies and the Department of Defense from 2013 through...more
Overview. “Sequestration” refers to automatic federal spending cuts put in place by the Budget Control Act of 2011. The cuts go into effect January 2, 2013, unless Congress passes legislation to avoid that result. The...more
If you provide goods or services to the Department of Defense as a prime contractor or subcontractor, you may be concerned about the sequestration of funds beginning January 2, 2013 and its impact on your business. Worrying...more
On July 30, the U.S. Department of Labor (DOL) issued a "guidance" letter regarding whether federal contractors must issue written notices - pursuant to the federal Worker Adjustment and Retraining Notification Act (WARN) -...more
With the 2012 presidential election months away, government agencies and contractors continue to speculate about the possible effects of sequestration. Whether sequestration will actually occur is unknown, as Congressional...more
Government contractors are facing a year of unprecedented uncertainty. Three things contribute to this: (1) reduced funding requested by the Pentagon; (2) the prospect of sequestration (the automatic cuts triggered when a...more
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