Sequestration

Sequestration

The $85 billion worth of U.S. government budget cuts as part of the federal sequestration will hamper agencies key to processing cargo and building the infrastructure freight traffic depends on. In a larger sense, the cuts will likely dampen business and consumer demand, reducing the amount of freight that needs to be hauled by trains, trucks, vessels and airplanes.

The federal cuts, which took effect March 1, are just the first wave of the $1.2 trillion worth of spending reductions set to take place over the next 10 years. The remaining budget reductions will kick in unless Congress and the Obama administration solve the federal deficit crisis.

How sequestration will impact the U.S. economy and supply chains is fluid, so make sure to keep an eye on update and analysis via The Journal of Commerce.

News & Analysis

U.S. Capitol
14 Oct 2013
There’s little good news coming out of Washington these days. The federal government partially shut down at the beginning of the month after a stalemate in Congress over funding President Obama’s health care reform law. Congress and the Obama administration failed to address long-term fiscal issues, allowing the federal budget sequestration — the proverbial gun pointed to its own head — to fire.

Commentary

The negative impacts of sequestration on the international trade community are looming for California's public ports, and what happens there will ripple through the national economy in a matter of weeks unless Congress takes quick action.

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