FY 2027 Budget Cuts: Sequestration Hits Government Spending Hard
Published Date: 4/9/2026
Presidential Document
Summary
Starting October 1, 2026, the government will cut spending in many areas to help control the budget for fiscal year 2027. These spending cuts, called sequestration, affect most government programs except a few that are protected. The Office of Management and Budget has figured out exactly how much money will be trimmed to keep the budget balanced and reduce the deficit.
Analyzed Economic Effects
1 provisions identified: 0 benefits, 1 costs, 0 mixed.
Mandatory Sequestration of Direct Spending
Starting October 1, 2026, the President ordered across-the-board cuts (sequestration) to direct spending in every non-exempt federal budget account for fiscal year 2027. The size of each cut is the amount calculated by the Office of Management and Budget in its April 3, 2026 report and must be applied under section 251A of the Balanced Budget and Emergency Deficit Control Act.
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