Sequestration (Government Spending)

Sequestration is a procedural mechanism that triggers automatic spending cuts when an agency exceeds its allocated budget. Established by the Budget Control Act of 2011, it empowers the Office of Budget Management to determine if discretionary programs have surpassed budget limits. The Congressional Budget Office (CBO) plays a role in identifying these breaches. Each year, Congress must set statutory caps for sequestration to be activated. If these caps are not established, sequestration is not triggered. In essence, sequestration ensures fiscal discipline by enforcing budgetary limits.

Summarize the mechanism established by the Budget Control Act of 2011 regarding budget management.

Explain how the Congressional Budget Office (CBO) is involved in the sequestration process.

Describe the conditions under which sequestration is triggered.

What are statutory caps and how do they relate to sequestration?

What is the primary purpose of sequestration as described in the text?