Effective Monday, the Defense Finance and Accounting Service is implementing a hiring freeze and reducing funds for travel, training and overtime in an attempt to handle potential sequestration cuts.
According to Federal Times, DFAS Director Terri McKay furloughs are also a possibility if the sequester kicks in or Congress lets the continuing resolution expire and does not reach a budget agreement.
Ed Abounader, president of an American Federation of Government Employees council, told Federal Times DFAS could exempt mission-critical operations and pay for service members in combat zones from the cuts.
Stephen Losey writes sequestration would result in an estimated 9 percent cut to the Pentagon’s budget for the rest of fiscal year 2013.
Any deficit reduction agreement will also likely reduce defense funds, according to Losey’s report.
The Air Force is also freezing civilian hiring ahead of sequestration.