Sequestration Order for FY2027 Reduces Direct Spending, Effective October 1
Summary
The President has issued a sequestration order for FY2027 pursuant to the Balanced Budget and Emergency Deficit Control Act. The order mandates automatic spending cuts to non-exempt direct spending budget accounts, with reductions calculated by OMB in its April 3, 2026 report. The sequestration takes effect October 1, 2026, applying the full programmatic cuts specified under section 251A of the Act.
What changed
The President has issued a sequestration order implementing the third and final sequestration under the Balanced Budget and Emergency Deficit Control Act for fiscal year 2027. The order directs OMB to apply the calculated percentage reduction to all non-exempt direct spending accounts, effective October 1, 2026. All sequestrations must comply with the specific requirements and calculations contained in OMB's April 3, 2026 report to Congress.
Affected parties including federal agencies, grantees, and entities receiving direct federal spending should monitor their FY2027 funding levels as sequestration will automatically reduce budget authority across applicable non-exempt programs. Recipients of federal grants and contracts in affected accounts should anticipate reduced funding levels when the fiscal year begins on October 1, 2026.
What to do next
- Monitor FY2027 budget allocations for your agency's non-exempt accounts
- Review OMB's April 3, 2026 sequestration report for applicable reduction percentages
- Prepare for reduced direct spending allocations effective October 1, 2026
Archived snapshot
Apr 9, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
SEQUESTRATION ORDER FOR FISCAL YEAR 2027 PURSUANT TO SECTION 251A OF THE BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT, AS AMENDED
April 8, 2026
By the authority vested in me as President by the laws of the United States of America, and in accordance with section 251A of the Balanced Budget and Emergency Deficit Control Act (the “Act”), as amended, 2 U.S.C. 901a, I hereby order that, on October 1, 2026, direct spending budgetary resources for fiscal year 2027 in each non-exempt budget account be reduced by the amount calculated by the Office of Management and Budget in its report to the Congress of April 3, 2026.
All sequestrations shall be made in strict accordance with the requirements of section 251A of the Act and the specifications of the Office of Management and Budget’s report of April 3, 2026, prepared pursuant to section 251A(9) of the Act.
THE WHITE HOUSE,
April 3, 2026.
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