To:       CGA

From:   A۰P۰L۰U Congressional and Governmental Affairs Staff


  • Administration Releases Fact Sheet on Sequester’s Impact


Today, the White House released “Fact Sheet: Examples of How the Sequester Would Impact Middle Class Families, Jobs and Economic Security” which points out the various ways in which Americans and the economy would be affected if sequestration occurs. Below are just some highlights from the fact sheet and their predicted impacts of the sequester:


  • The OMB portends that sequestration will require and annual reduction of roughly 5% for nondefense programs. These cuts are especially severe as they must be achieved over only seven months instead of 12. Adjusted for that time frame, the effective percentage reductions will be approximately 9% for non-defense programs.
  • Cuts to research and innovation funding may mean that several thousand researchers could lose their jobs. Additionally, 12,000 scientists and students would also be impacted.
  • NIH would have to cut hundreds of research awards. Each research award supports up to seven research positions, therefore thousands of researchers could lose their jobs.
  • NSF would issue nearly 1,000 fewer research grants and awards, impacting an estimated 12,000 scientists and students and curtailing critical scientific research.



  • House Appropriations Democrats Release Report on Discretionary Programs Cuts Since 2010


The House Appropriations Committee Democrats released a report outlining the $1.5 trillion in spending cuts Congress has enacted over 10 years since 2010. These numbers do not include any impending cuts from sequestration. The report finds that discretionary spending will sink to its lowest level as a share of GDP in 45 years.


House Appropriations Democrats also have released their own two-page fact sheet (attached) on the impact of sequestration.



  • CBO Releases Positive Outlook for Pell Grant Program and Student Loans in 2014


The Congressional Budget Office (CBO) released this week the February baselines for Pell grants and Student Loans, and the outlook for both programs is rather positive.


Thanks to a larger than anticipated FY13 surplus, CBO estimates that there will no shortfall in FY14. Additionally, the FY15 shortfall has been reduced from some $5 billion to approximately $2 billion.


In regards to student loans, CBO estimates that borrowing will be down about $7 billion for FY13 and about $6 billion overall for FY14. The decrease in borrowing is attributed to a decrease in subsidized Stafford loans and Parent PLUS loans.



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