Home / Latest News / OMB’s Shaun Donovan: Sequester Would Cut $90B From FY 2016 Discretionary Spending

OMB’s Shaun Donovan: Sequester Would Cut $90B From FY 2016 Discretionary Spending

Shaun Donovan
Shaun Donovan

The Office of Management and Budget has submitted a report to Congress that says up to $90.4 billion in agencies’ discretionary spending for fiscal year 2016 could be cut if sequestration returns, Federal News Radio reported Tuesday.

Jason Miller writes that OMB Director Shaun Donovan said in the report lawmakers will have to act to cancel the possible reductions to the 2016 discretionary caps.

The discretionary budget for defense programs could drop to $523 billion while nondefense discretionary spending would be down to $493.5 billion, the report said.

Miller notes that Congress will need to enact legislation to stop the Joint Committee reductions under the Budget Control Act for 2016.

Donovan added that if the cap reductions push through, it could put domestic investments, national security and other government functions at risk and would bring the base discretionary budget at its lowest level in the past 10 years.

In response to the potential sequester, the White House asked agencies to request reduced discretionary funds compared to 2015 but it also proposed in the fiscal 2016 budget for Congress to find other venues for the budget cuts, Miller reports.

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