New deadline for sequestration
Late in 2012, Congress was up against a hard deadline to avert the aptly named “fiscal cliff” which encompassed numerous parts – among them, sequestration and a January 2, 2013 inaction date. Due to fundamental differences in opinion over how to avert the crisis, Republicans and Democrats were unable to come to a compromise earlier in the 2012. As the debt ceiling and tax levels were set to expire at year’s end national urgency drove our leaders in Washington to address the fiscal cliff, but unfortunately only taxes and the debt ceiling received the necessary attention.
The issue of sequestration was given a band-aid for 57 day as Congress ran out of time to address the issue during cliff deliberations. As a short-term fix they did include a stop-gap funding measure in the continuing resolution which allowed 2012 funding levels to be maintained through March 1, 2013. This resolution provided temporary relief for agency budgets, however it did not solve the problem. In some instances it actually furthered an already festering question for defense contractors, which is “what programs will be affected by these cuts if they occur?” Due to this uncertainty contractors are again left waiting for crucial answers which factor into how they make strategic and long-term business decisions.
The Aerospace Industries Association is pushing hard for a long-term bipartisan solution to this serious problem. For more information please read a statement by the Associations CEO, Marion C. Blakey by clicking here.
Help us continue the fight against sequestration by getting active online. Tweet using the hashtag #StopSequestration to let everyone know that you think this bad policy must go.