Mrach 1st arrived with no deal on “sequestration,” the federal deadline for the $85 Billion in spending cuts to go into effect. These cuts will now be set in motion over the next several months and will impact many programs that assist cities such as the Community Development Block Grant program, the HOME program, and many more. An initial estimate is that these programs will be cut 6% across the board, although there is a lot of room for interpretation on how the departments can hand down the cuts, so it is not crystal clear what the exact outcome will be. In addition, if there is no more negotiation, the federal government will be headed for a shutdown on March 27th as the Continuing Resolution (CR) that is keeping the federal government program operating after the 2012 budget cycle ended expires. At this point, there is little hope than these cuts will be avoided in the budget talks as the CR ends. 

Summer Minnick is the Director of Policy Initiatives and Federal Affairs. She can be reached at 517-908-0301 or [email protected].