OMB Report to the Congress on the Joint Committee Reductions for Fiscal Year 2016   [open pdf - 945KB]

"The report has been prepared consistent with the requirements of the Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA), as amended. This report provides the Office of Management and Budget's (OMB's) calculations of the amounts by which the discretionary spending limits ('caps') specified in section 251 ( c) of BBEDCA, as amended, are required to be reduced, calculations of the amount and percentages by which direct spending is required to be reduced, and a listing of the reductions required for each non-exempt budget account with direct spending. The report is required notwithstanding the Administration's FY 2016 Budget proposal to replace most of the reductions to the discretionary caps set forth in BBEDCA and tum off the mandatory spending sequestration cuts for the remainder of the budget window, replacing them with alternative balanced deficit reduction. These reductions are triggered by the failure of the Joint Select Committee on Deficit Reduction to propose, and the Congress to enact, comprehensive and responsible deficit reduction legislation to achieve the savings targets enacted as part of the Budget Control Act of 2011 (BCA). The Administration has no discretion in the calculation and allocation of the reductions. Instead, the reductions have been calculated pursuant to the requirements specified in the BCA. In FY 2016, the law requires making reductions of almost $54 billion to defense discretionary spending, $3 7 billion to nondefense discretionary spending, and the sequestration of nearly $19 billion in defense and nondefense direct spending. Specifically, OMB calculates that the sequestration of non-exempt direct spending requires reductions in FY 2016 of 2.0 percent to non-exempt Medicare spending, 6.8 percent to other non-exempt nondefense mandatory programs, and 9.3 percent to non-exempt defense mandatory programs."

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