Key Issues > Sequestration
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Sequestration

Sequestration is a budget cut to most programs, projects, and activities across the federal government by uniform percentages. On March 1, 2013, the President ordered sequestration, and agencies face the prospect of further sequestrations through 2024.

 

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The 2013 sequestration was the first in more than two decades. It required federal agencies to reduce discretionary appropriations and direct spending (also referred to as mandatory spending) by $80.5 billion. This had a wide range of effects on federal agency operations and on services to the public.

Infographic: Overview of Sequestration Implementation and Effects

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How Did Sequestration Affect Agency Operations and Services to the Public?

GAO examined how 23 large federal agencies planned for and later implemented sequestration and the effects of the reduced spending. These agencies represented roughly $78 billion of the sequestered funds in fiscal year 2013, spread across more than 7,800 individual programs, projects, and activities. These effects were in three main areas:

  • Reduction in Services: For example, agencies reported that sequestration reduced assistance for education, housing, and nutrition, as well as health and science research and development grants. Some federal services also experienced backlogs and delays in service delivery as a result of personnel actions, including limiting hiring and furloughing employees.
  • Delays in Investments: Agencies reported delaying investments such as information technology and facilities projects.
  • Effects on the Federal Work Force: More than 770,000 federal employees were furloughed between 1 and 7 days. Agencies also canceled or limited monetary awards, reduced employee travel and training, and curtailed hiring. Agency officials expected these and other actions to have a negative effect on employee morale and possible longer-term implications for federal retention and recruitment.

What Actions did Agencies Take to Mitigate the Effects of Sequestration and Implement Reductions?

Most agencies reported using funding flexibilities to balance protecting their mission with need to achieve the required sequestration reductions. Some of these flexibilities may be more limited in future years. Flexibilities included:

Funding increases enacted by Congress after sequestration in the Consolidated and Further Continuing Appropriations Act of 2013 also helped mitigate sequestrations effects for some selected programs.

Agencies took a broad range of personnel and non-personnel actions to implement the reductions required by sequestration.

Table 1 provides an overview of each agency's sequestered funds. For additional information on how agencies planned for and implemented sequestration and its effects, click on the agency’s name.

Table 1: Sequestered Funds, Budget Accounts, and Programs, Projects, and Activities by Agency, Fiscal Year 2013

Agency Total 2013 funding ($ in millions) Sequestered funds ($ in millions) Sequestered budget accounts Sequestered programs, projects, and activities
Department of Agriculture (USDA) $176,108 $1,972 90 923
Department of Commerce (Commerce) $8,150 $555 53 214
Department of Defense (DOD) $621,200 $37,255 467 3,905
Department of Education (Education) $53,000 $2,500 23 120
Department of Energy (DOE) $26,800 $1,900 31 252
Department of Health and Human Services (HHS) $983,100 $15,800 40 582
Department of Homeland Security (DHS) $60,000 $2,400 56 150
Department of Housing and Urban Development (HUD) $106,000 $3,000 30 63
Department of the Interior (Interior) $21,300 $856 84 546
Department of Justice (DOJ) $30,800 $1,600 40 127
Department of Labor (DOL) $102,500 $3,100 27 115
Department of State (State) and Agency for International Development (USAID) $54,300 $2,000 45 514
Department of Transportation (DOT) $91,000 $1,900 38 100
Department of the Treasury (Treasury) $619,300 $1,335 51 96
Environmental Protection Agency (EPA) $8,950 $455 8 91
General Services Administration (GSA) $22,200 $13 9 9
National Aeronautics and Space Administration (NASA) $17,500 $627 9 9
National Science Foundation (NSF) $7,360 $361 7 8
Nuclear Regulatory Commission (NRC) $1,049 $52 2 4
Office of Personnel Management (OPM) $169,900 $9 6 6
Small Business Administration (SBA) $1,900 $93 6 6
Social Security Administration (SSA) $930,500 $391 4 6

Source: GAO analysis of agency data.

Note: This table is excerpted from GAO-14-244. For more details, see the report.

Looking for our recommendations? Click on any report to find each associated recommendation and its current implementation status.

Sequestration:

2013 Sequestration:

2013 Sequestration:

Agencies Reduced Some Services and Investments, While Taking Certain Actions to Mitigate Effects
GAO-14-244:
Published: Mar 6, 2014. Publicly Released: Mar 6, 2014.

Sequestration:

Observations on the Department of Defense's Approach in Fiscal Year 2013
GAO-14-177R:
Published: Nov 7, 2013. Publicly Released: Nov 7, 2013.

Agency Operations:

Agencies Must Continue to Comply with Fiscal Laws Despite the Possibility of Sequestration
GAO-12-675T:
Published: Apr 25, 2012. Publicly Released: Apr 25, 2012.

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