Yesterday afternoon, the leaders of the Joint Committee on Deficit Reduction released a statement that acknowledged the committee's failure to reach a bipartisan deficit reduction agreement. Since August, the bipartisan, bicameral Joint Committee had been working to reduce the national debt by $1.2 trillion. The panel was required to have an agreement worked out by today, 48 hours ahead of the November 23rd voting deadline.
As a result of the stalemate, $1.2 trillion in sweeping, automatic spending cuts are scheduled to begin on January 2, 2013. The across-the-board reductions, known as a sequester, would be ordered for the government over nine years. Still, Congress could send a bill to President Obama that could either repeal or modify the sequester. Republicans have already started to weigh options to adapt the sequester in an attempt to ease spending cuts within the Defense Department. However, the President has previously stated that he would not accept any measure that attempts to turn off part of the sequester.
- Total cuts over 9 years: $1.2 trillion
- Yearly cuts: $109.3 billion
- $54.7 billion from Defense accounts
- $54.7 billion from Non-Defense accounts
As always, we will continue to monitor this and update you accordingly. Please do not hesitate to contact us if we can be of additional assistance.
B. Jeffrey Brooks
Partner in Charge
Adams and Reese LLP
20 F Street, NW
Washington, DC 20001
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