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Friday, February 22, 2013
The legislation would provide mandatory spending reductions in order to replace automatic cuts to discretionary spending (primarily from defense accounts) in 2013 under the Budget Control Act and to reduce the deficit. The savings generated from these reforms to mandatory programs would first be used to offset the approximately $78 billion cost of replacing the automatic across-the-board discretionary spending cuts that are scheduled to occur on January 2, 2013, under what is known as sequestration. The amount of $78 billion reflects the remainder of the FY 2013 discretionary sequester after accounting for lowering the FY 2013 discretionary cap from $1.047 to $1.028 as provided for in the House-approved Budget Resolution. The additional savings achieved through reconciliation beyond the $78 billion (over $180 billion in the next ten years) would further reduce the deficit Advertisement
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