How Would FRA Sequestration Work?

Last summer Congress passed the Fiscal Responsibility Act (FRA), suspending the government’s debt ceiling while also capping discretionary spending for fiscal years (FYs) 2024 and 2025. The act attempts to discourage reliance on continuing resolutions (CRs) by lowering caps on defense spending if Congress fails to pass 12 full-year appropriations bills by April 30. The spending caps are enforced by sequestration.

This Q&A summary of the FRA:

• explains funding caps and how they will be enforced via sequestration
• provides a list of programs, noting whether they are subject to sequestration

If all 12 appropriations bills are passed by April 30 and abide by the recent congressional agreement on overall spending levels, no FRA sequestration will occur for FY 2024.