§015s. (CB) Sequestration Update Report

Cyclopedia of Congressional Budget Law

Sequestration Update Report

Summary

The Sequestration Update Report is one of a series of reports issued by Office of Management and Budget (OMB) and the Congressional Budget Office (CBO) prior to a sequestration occurring. They are the “Preview”, “Update” and “Final” Sequestration Reports. The Sequestration Update Report is transmitted by CBO and OMB on August 15 and 20, respectively, of each year. These updates provide a status report as to whether a sequester may be required at the end of a session of Congress.

Sequestration refers to automatic spending cuts that occur through a cancellation of a specified percentage of budgetary resources available to nonexempt government programs. OMB administers the sequestration process and determines when this is legally required, the amounts to be cancelled, and the method by which the percentage is to be applied . The sequestration is ordered pursuant to 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.

Statutory Requirements

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

(e) Sequestration Update Reports.—On the dates specified in subsection (a), OMB and CBO shall issue a sequestration update report, reflecting laws enacted through those dates, containing all of the information required in the sequestration preview reports. This report shall also contain a preview estimate of the adjustment for disaster funding for the upcoming fiscal year.

Note: Subsection (a), referred to above in paragraph (1), includes a table indicating that Sequestration Update Reports must be issued pursuant to the following dates:

August 15………………………………..	CBO sequestration update report.
August 20………………………………..	OMB sequestration update report.

Disaster Adjustment Information

Section 103(2) of the Budget Control Act of 2011 (Pub. L. 112-25) added the text of the last sentence of the section stating: “This report shall also contain a preview estimate of the adjustment for disaster funding for the upcoming fiscal year.” 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).