{
  "id": "R42972",
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      "title": "Sequestration as a Budget Enforcement Process: Frequently Asked Questions",
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      "title": "Sequestration as a Budget Enforcement Process: Frequently Asked Questions",
      "summary": "A sequester provides for the automatic cancellation of previously enacted spending, making largely across-the-board reductions to non-exempt programs, activities, and accounts. Sequestration is currently employed as the enforcement mechanism for three budgetary policies: \nIt is used to enforce the statutory limits on defense and non-defense discretionary spending as created by the Budget Control Act of 2011 (BCA; P.L. 112-25).\nIt is used to enforce the budgetary goal established for the Joint Select Committee on Deficit Reduction established by the BCA. This automatic process was created to reduce spending, beginning in 2013, in the event that a \u201cJoint Committee Bill\u201d reducing the deficit by at least $1.2 trillion over the period covering FY2012-FY2021 was not enacted by January 15, 2012.\nIt is used to enforce the Statutory Pay-As-You-Go Act of 2010 (Statutory PAYGO; P.L. 111-139). The budgetary goal of Statutory PAYGO is to prevent new revenue and mandatory spending legislation enacted during a session of Congress from increasing the net deficit (or reducing a net surplus) over either a six-year or 11-year period.\nA sequester is implemented through a sequestration order issued by the President as required by law. Many programs are exempt from sequestration, such as Social Security, and Medicaid. In addition, special rules govern the sequestration of certain programs, such as Medicare. \nSince the BCA was enacted, several pieces of legislation have been enacted making changes to the spending limits and enforcement procedures included in the BCA. Some of the most significant of these changes were made by the American Taxpayer Relief Act of 2012 (ATRA; P.L. 112-240), the Bipartisan Budget Act of 2013 (P.L. 113-67, referred to as the Murray-Ryan agreement), and the Bipartisan Budget Act of 2015 (P.L. 114-74).\nSequestration was first used as an enforcement mechanism in the Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA; also known as the Gramm-Rudman-Hollings Act; P.L. 99-177) to enforce annual statutory deficit limits. These limits were replaced by the Budget Enforcement Act of 1990 (BEA; P.L. 101-508), which established two procedures that each used sequestration as an enforcement mechanism: (1) pay-as-you-go (PAYGO) procedures to control new mandatory spending and revenue legislation, and (2) discretionary spending limits to control the level of discretionary spending. These two procedures remained in effect until 2002.",
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