sequestration
Automatic across-the-board budget cuts triggered by legislation when deficit reduction targets are not met, applied equally to defense and non-defense spending.
Example
“The 2013 sequestration cut $85 billion automatically when Congress failed to agree on a deficit reduction deal.”
Memory Tip
SEQUESTRATION = automatic across-the-board spending cuts when Congress can't agree. The budget axe falls.
Why It Matters
Sequestration affects your wallet because it can reduce government services, employment, and contracts that support local economies. When automatic cuts happen, they may impact tax refunds, federal employee salaries, defense contractor jobs, and funding for programs you or your family depend on.
Common Misconception
Many people think sequestration means the government stops spending money entirely or that it only affects wasteful programs. In reality, sequestration cuts a percentage from nearly all programs equally, which can harm essential services like Medicare, education, and infrastructure while still cutting defense.
In Practice
In 2013, Congress failed to agree on deficit reduction, triggering sequestration that automatically cut about 8 percent from federal budgets. This resulted in furloughs of 800,000 federal employees, delayed air traffic control staff hiring, and reduced food safety inspections, all happening simultaneously across government agencies.
Etymology
From Latin 'sequestrare' (to remove, set apart) — budget funds are SEQUESTERED (withheld).
Common Misspellings
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