Special Analysis 13-01
January 15, 2013

The American Taxpayer Relief Act of 2012 (ATRA; P.L. 112-240) postpones the Budget Control Act (BCA) sequester from January 2, 2013 to March 1, 2013. The new law also reduces the total FY 2013 across-the-board (ATB) cut by $24 billion because it includes offsets to pay for the two-month delay.

FFIS has updated its state-by-state estimates of potential spending reductions resulting from the sequester to reflect these changes. FFIS estimates that states could see a -$4.4 billion funding reduction in FY 2013 for the programs in the FFIS database that are subject to sequester. However, most of the funding states receive via federal grants (82%) would be exempt from sequester.