"The announcement this afternoon that the supercommittee cannot reach agreement to avoid sequestration is of grave concern. At stake are $1.2 trillion in across-the-board budget cuts hitting the Defense Department, NASA, FAA and other federal programs. The Defense Department will need to start applying cuts to the fiscal year 2013 budget immediately and job losses will increase as the Pentagon is forced to halt work. AIA will continue to make sure that the impacts to our nation, economy and industry are well understood by all Americans."
"The committee faced a Wednesday deadline to vote on a proposal to slash the nation's deficits by $1.5 trillion over the decade. The panel that was brought into existence as a result of the summer debt ceiling fight spent three months in mostly secret negotiations. A deal needed to be posted by Monday evening to provide a 48-hour review. The failure of the committee now triggers mandatory spending cuts that slice equally across defense and discretionary accounts, to begin in January 2013."
OMB directs agencies to cut 2013 budgets, Government Executive
"The Obama administration is directing federal agencies to submit fiscal 2013 budget requests that are at least 10 percent below their current appropriation level."
"In light of the tight limits on discretionary spending starting in 2012, your 2013 budget submission to OMB should provide options to support the President's commitment to cut waste and reorder priorities to achieve deficit reduction while investing in those areas critical to job creation and economic growth. Unless your agency has been given explicit direction otherwise by OMB, your overall agency request for 2013 should be at least 5 percent below your 2011 enacted discretionary appropriation. As discussed at the recent Cabinet meetings, your 2013 budget submission should also identify additional discretionary funding reductions that would bring your request to a level that is at least 10 percent below your 2011 enacted discretionary appropriation."