The massive federal spending cuts that face almost every U.S. government agency are set to begin Friday, March 1, 2013. These automatic across-the-board cuts, referred to as “sequestration,” will total $1.2 trillion over 10 years. Of this total, $85 billion in military and domestic discretionary spending reductions are scheduled for the remainder of the current fiscal year that ends September 30.
Sequestration is the result of attempts by Congress and the Obama administration to gain control of the growth in national debt. It has been scheduled to begin for more than a year but Congress and the President delayed the start until March 1 as part of the fiscal cliff negotiations that ended on New Year’s Day. What impact sequestration will have on the overall U.S. economy and government services/programs is unclear and it may take several months to become evident.
The NTRA’s federal legislative team maintains a daily presence in Washington, D.C. to closely monitor and act on those issues that impact horse racing. We will update the industry with relevant impacts of sequestration in this space.