Over the next couple of days and weeks you can expect to hear a lot about sequestration. Much like the “fiscal cliff” dominated news coverage at the end of last year – sequestration coverage will likely be ubiquitous on cable news outlets. Given how high profile – and important – this issue is, we thought that a primer on sequestration might be helpful to you and your business.
What is sequestration?
Sequestration is the across the board budget cuts that are the product of the Budget Control Act of 2011. Sequestration, which was insisted on by Jack Lew and the Obama administration as part of the Budget Control Act, was intended to be so draconian and so mindless that it would force the bipartisan, bicameral “super committee” to come to a deal on a deficit and debt reduction package. Unfortunately, the super committee was unable to reach a deal and now we are facing the looming reality and uncertainty of the sequester.