AGC: Sequestration threatens federal programs

Therese Dunphy

February 19, 2013

Congress faces a March 1 deadline to enact or delay sequestration, which will mean spending cuts totaling $85 billion between March 1 and Sept. 30, and $1 trillion throughout the next 10 years, the AGC reports in its Data DIGest.  

“The cuts were expected to mean reductions this year of 8 percent in defense and 5 percent in non-defense programs,” an AP report notes. “But because lawmakers recently delayed the impact until March 1…the sequester will force deeper reductions of 13 percent for defense and 9 percent for other programs.”

AGC says that cuts to federal construction accounts could total more than $4 billion. Although the Highway Trust Fund, Airport Improvements Program, Department of Veterans Affair accounts, and the General Services Administration accounts are exempt from the sequestration process, construction could still be impacted by reductions in construction among military facilities.

Another hit would come in the form of a $135 million reduction in drinking water and waste water facilities and infrastructure.

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