Report: Sequestration Cuts Affecting States

Broad cuts to federal funding, known as sequestration, will eliminate $5.1 billion in federal assistance to states this year, according to a report by the Economic Policy Institute.

About 25 percent of all spending by state and local governments is dependent on federal grants and loans. These cuts will affect state and local programs ranging from the WIC Farmers’ Market Nutrition Program, to the Appalachian Regional Commission, and the Children’s Health Insurance Program.

While sequestration cuts were designed to be indiscriminate at the federal level, the effects on the state level are varied. The Economic Policy Institute’s report concludes that the “heaviest-hit” states will include Louisiana, Indiana, Maine, Connecticut, and Massachusetts.

If sequestration is not repealed or replaced, these cuts will continue to affect states in 2014 and beyond. Under the Budget Control Act of 2011, sequestration will remain in place for nine years through 2022.

More information and agency-specific updates can be found on Sequestration Central.
 

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