The Ticking Financial Time Bomb—Since the Joint Select Committee on Deficit Reduction failed to reduce the deficit by $ 1.2 trillion by Jan. 15, 2012, the Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA), as amended by the Budget Control Act of 2011 (BCA), 2 USCA § 901a, requires the president to issue a sequestration order on Jan. 2, 2013, which will automatically cut both defense and non-defense appropriations. (Sequestration refers to the permanent cancellation of budgetary resources by discretionary appropriations or direct spending law. See 2 USCA § 900(c) (2); 2 USCA § 906(k).)
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Reprinted with permission from The Government Contractor.