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CBO Says No Sequestration in 2014

January 31, 2014—The Congressional Budget Office (CBO) Jan. 28 reported that according to its estimates, defense and nondefense appropriations in fiscal year (FY) 2014 will not exceed the statutory spending caps for those categories and therefore sequestration will not be required this year.

The report notes that the White House's Office of Management and Budget (OMB) has the sole authority to determine whether sequestration is required and how the proportional cuts are to be made based on its own estimates of federal spending.

CBO cautions that the FY 2014 caps could be breached if Congress approves any supplemental appropriations by Sept. 30, the end of the federal fiscal year, unless the additional funding falls into categories that cause an adjustment of the spending caps, such as overseas contingency operations for military operations in Afghanistan or certain types of disaster relief, or if the spending is offset by reductions in funding for other programs.  If the FY 2014 caps are breached late in the fiscal year, the caps for FY 2015 would be reduced to compensate for the excess spending in 2014.

In December, the Bipartisan Budget Act of 2013 (P.L. 113-67) modified the FY 2014 caps for defense and nondefense spending established by the Budget Control Act of 2011 (P.L. 112-25).  The modified FY 2014 caps total $1.012 trillion; $520 billion for defense and $492 billion for nondefense.


Dave Moore
Senior Director, Government Relations
Telephone: 202-828-0559


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Jason Kleinman
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Telephone: 202-903-0806