Special Analysis 11-06
December 2, 2011

The Budget Control Act of 2011 (BCA, P.L. 112-25) includes automatic across-the-board (ATB) spending reductions unless Congress and the president enact a Joint Select Committee (JSC) bill by January 15, 2012, that reduces the deficit by at least $1.2 trillion over 10 years. This process, known as sequestration, would take effect on January 2, 2013, for fiscal year (FY) 2013 spending. With the recent failure of the JSC to produce a deficit-reduction proposal, there is little chance of a package becoming law by January 15, 2012. Moreover, because the JSC failed to meet its November 23, 2011, deadline, any legislation would need to be considered under regular House and Senate rules, not the fast-track procedures outlined in the BCA. Absent the reversal of BCA provisions by Congress and the president, sequestration seems likely.

This Special Analysis estimates state-by-state funding levels in FY 2013 under a full sequester for the 210 programs tracked by FFIS. These are hypothetical illustrations designed to give states a sense of the magnitude of potential spending reductions. It is not possible to determine the precise implications of a sequester on grant-in-aid funding.