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Sequestration Order for Fiscal Year 2017 Pursuant to Section 251A of the Balanced Budget and Emergency Deficit Control Act, as Amended

This order triggers automatic spending cuts (sequestration) for fiscal year 2017, requiring direct spending reductions in non-exempt budget accounts effective October 1, 2016, based on OMB calculations. The cuts follow statutory formulas in the Balanced Budget and Emergency Deficit Control Act, as amended.

Federal Register Open PDF 81 FR 7693

Impact dates

  1. Sequestration reductions take effect for FY2017

Key directives

  • Direct spending budgetary resources in each non-exempt budget account shall be reduced by OMB-calculated amounts effective October 1, 2016
  • All sequestrations shall follow section 251A of the Act and OMB report specifications

Timeline

Immediate

  • OMB report of February 9, 2016 issued to Congress specifying reduction amounts

Near term (90d)

—

Long term

  • Automatic spending reductions take effect October 1, 2016 for FY2017

Risks & tensions

  • Mechanism is automatic/statutory, reducing presidential discretion; may create tension with congressional appropriations
  • Uncertainty about specific programs affected depends on OMB report details not fully specified in order text
Other: Sequestration Order for Fiscal Year 2017 Pursuant to Section 251A of the Balanced Budget and Emergency Deficit Control Act, as Amended · Executive Orders