How Eliminating the Automatic Spending Reductions Specified by the Budget Control Act Would Affect the U.S. Economy in 2014

by Sabrina I. Pacifici on July 25, 2013

CBO letter to Rep. Chris Van Hollen, July 25, 2013: ”As you requested, the Congressional Budget Office (CBO) analyzed a proposal under which the automatic spending reductions in effect for 2013 would be  canceled at the beginning of August and none of the reductions scheduled for  2014 would be implemented; for 2013, mandatory payments made after early  August would be at the rates in effect prior to sequestration, and agencies would  have an additional year to obligate the restored discretionary funding. In total, by CBO’s estimates, canceling the automatic spending reductions effective August 1 would increase outlays relative to those under current law by $14 billion in fiscal year 2013 and by $90 billion in fiscal year 2014.”

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