What does sequester cut

Click here to read more about how we use cookies. To embed, copy and paste the code into your website or blog:. The BCA sequester was originally set to end in , but has been extended six different times: The Bipartisan Budget Act of extended the sequester through FY A law modifying the cost-of-living adjustment COLA for certain military retirees extended the sequester through FY Send Print Report.

Brownstein Hyatt Farber Schreck. Laura Johnson. Emily Felder. Adam Steinmetz. Published In: Acts of Congress. Health Care Providers. But Congress has to act in order for that to happen. Learn more about President Obama's plan to avoid harmful cuts and reduce the deficit. And most Americans agree with me. Watch President Obama's full statement on YouTube. The state-by-state reports below show the impact the sequester will have on jobs and middle class families across the country.

You are here Home Blog. Twitter Facebook Email. Have questions about what the sequester is, and why American families and our national economy face the threat of harmful budget cuts? Check out this explainer for some background. Why Now? Alabama Alaska Arizona Arkansas. California Colorado Connecticut Delaware. When Congress raised the discretionary caps, it directed that the mandatory sequester calculations be made as if the caps had not been raised.

Unlike discretionary spending caps, which expire after , sequestration of mandatory spending has been extended on several occasions. The BBA of extended the mandatory sequester through , and then a law modifying military retiree benefits extended the sequester through These extensions did not specify the amount of savings that the sequester would need to achieve in fiscal years after FY , but instead directed OMB to apply the percentage reductions calculated for FY to subsequent fiscal years.

Under the BCA, across-the-board reductions are made to all mandatory programs that are not specifically exempt. In addition, the cut is limited for certain programs, such as Medicare, which receives cuts to providers that are capped at 2 percent regardless of the size of the sequester. Even though the Medicare cut is limited, it still comprises about three-quarters of the non-defense mandatory sequester in dollar terms.

The remaining reductions come mostly from farm programs, but student loans, the Social Service Block Grant, vocational rehabilitation, and dozens of other programs are also affected. Excluding , eligible non-defense non-Medicare mandatory programs have been cut through sequester by about 6 to 7 percent, and defense mandatory programs by about 9 percent.

The cap does not apply to certain Medicare administrative spending classified as mandatory, which is sequestered at the rate that applies to all other non-defense mandatory programs—5. Most Medicare administrative spending is discretionary, however, and thus not subject to this sequester. The 2 percent cut is a reduction in payments to Medicare providers and plans and has been in place every year since Beneficiaries see few direct impacts, as the sequester does not affect their benefit structure.

First, it temporarily suspends the Medicare sequester from taking effect between May 1, and December 31,