BCA Sequester: Impact of Two-Month Delay
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.