States, the Department of Defense and the BCA

In August 2011, the Budget Control Act of 2011 (BCA) was signed into law. It sets federal budget caps for both domestic discretionary and defense spending, and includes triggers for additional budget reductions. A good deal of attention has focused on the likely impact on states of cuts to domestic spending, while little attention has been focused on the impact on states from cuts in defense spending. For some states, the latter pose as much a threat as the former.