-OMB Taking Steps So Admin Can Act If Congress Misses Deadline
By Brai Odion-Esene
WASHINGTON (MNI) – The White House Wednesday admitted that it is preparing
contingency plans in the event that “sequestration” — the steep spending cuts
mandated by the Budget Control Act 2011 — kick in automatically at the
beginning of January next year, but said it remains confident a deal can be
reached before then.
Leaders of both the Democratic and Republican parties have pledged to work
together in the coming weeks on a deficit reduction plan that avoids
sequestration, White House Press Secretary Jay Carney told reporters during a
daily briefing, “and we are confident that we can reach an agreement.”
However, with less than a month left before the year ends — and before a
potential sequestration order would have to be issued — Carney said the Office
of Management and Budget must take certain steps to ensure the government is
ready to issue such an order if lawmakers do not act by the deadline.
Carney said the OMB is just ensuring that the administration is prepared
should action become necessary.
“Earlier this week OMB issued a request to federal agencies for additional
information to finalize calculations on the spending reductions that would be
required,” he said.
Carney went on to stress that “this action should not be read as a change
in the administration’s commitment to reach an agreement and avoid sequestration
… . This is just acting responsibly because of the potential for this
happening.”
Created by the 2011 Budget Control Act, the sequestration is one-half of
the looming “fiscal cliff” over which the White House and Congress are locked in
talks on how to avoid. The spending cuts would total $1.2 trillion over the
next decade, starting with about $50 billion in defense spending and another $50
billion in non-defense spending.
–MNI Washington Bureau; tel: +1 202-371-2121; email: besene@mni-news.com
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