Cyclopedia of Congressional Budget Law

Final Sequestration Report

Summary

Sequestration refers to automatic spending cuts that occur through the withdrawal of funding for certain (but not all) government programs. The Office of Management and Budget administers the sequestration process and determines when one is legally required, and the amounts of budgetary resources to be cancelled. A sequestration order is issued as outlined in the Final Sequestration Report that is transmitted by OMB to Congress fifteen days after the end of each session of Congress. CBO transmits an advisory Finals Sequestration Report to Congress within 10 days of the end of session.

See also Sequestration Preview Report and Sequestration Update Report.


Statutory Requirements

Under section 254 (BBEDCA), the requirements for the sequestration reports are set forth.

(f) Final Sequestration Reports. —

(1) Reporting requirement.—On the dates specified in subsection (a), OMB and CBO shall issue a final sequestration report, updated to reflect laws enacted through those dates.

(2) Discretionary sequestration reports.—The final reports shall set forth estimates for each of the following:

(A) For the current year and each subsequent year through 2021 the applicable discretionary spending limits for each category and an explanation of any adjustments in such limits under section 251, including a final estimate of the adjustment for disaster funding.

(B) For the current year and the budget year the estimated new budget authority and outlays for each category and the breach, if any, in each category.

(C) For each category for which a sequestration is required, the sequestration percentages necessary to achieve the required reduction.

(D) For the budget year, for each account to be sequestered, estimates of the baseline level of sequesterable budgetary resources and resulting outlays and the amount of budgetary resources to be sequestered and resulting outlay reductions.

(3) Pay-as-you-go and deficit sequestration reports.— The final reports shall contain all the information required in the pay-as-you-go and deficit sequestration preview reports. In addition, these reports shall contain, for the budget year, for each account to be sequestered, estimates of the baseline level of sequestrable budgetary resources and resulting outlays and the amount of budgetary resources to be sequestered and resulting outlay reductions. The reports shall also contain estimates of the effects on outlays of the sequestration in each outyear for direct spending programs.

(4) Explanation of differences.—The OMB report shall explain any differences between OMB and CBO estimates of the amount of any net deficit change calculated under subsection 252(b), any excess deficit, any breach, and any required sequestration percentage. The OMB report shall also explain differences in the amount of sequesterable resources for any budget account to be reduced if such difference is greater than $5,000,000.

(5) Presidential order.—On the date specified in subsection (a), if in its final sequestration report OMB estimates that any sequestration is required, the President shall issue an order fully implementing without change all sequestrations required by the OMB calculations set forth in that report. This order shall be effective on issuance.


Disaster Adjustment Information

Section 103(3) of the Budget Control Act of 2011 (Pub. L. 112-25) added the text:  ” including a final estimate of the adjustment for disaster funding’’.  This adjustment occurs as a revision, under section 251(b)(2)(D) (BBECA), to the discretionary spending limits (which are set forth in subsection (c) of that section). 


References

Congressional Budget Office Sequestration Page

OMB – Final Sequestration Report for Fiscal Year 2017 (OMB Report) May 19, 2017

OMB – Letter on the Delay of the Final Sequestration Report (Sec. 184 of Pub. L. 114-223, as amended)

Sequestration Reports from the Office of Management and Budget (Obama Administration: 2011-2017)

 


Public Laws

Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 99-177,  99 Stat. 1037, Dec. 12, 1985)

Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1985 (Public Law 100-119,  101 Stat. 754, Sept. 29, 1987)

Budget Enforcement Act of 1990 (Public Law 101-508, 104 Stat. 1388, Nov. 5, 1990)

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