Sequestration Order FY2027 Under Balanced Budget Act
Summary
The President has issued a sequestration order for Fiscal Year 2027 pursuant to Section 251A of the Balanced Budget and Emergency Deficit Control Act. The order implements automatic spending cuts across federal programs to meet deficit reduction targets mandated by law. Federal agencies must reduce budget authority across most nonexempt accounts to achieve the required sequestration percentage.
What changed
The President issued a sequestration order for Fiscal Year 2027 implementing automatic spending cuts required under the Balanced Budget and Emergency Deficit Control Act of 1985, as amended. The order triggers across-the-board reductions to discretionary and mandatory spending programs to achieve deficit reduction targets specified in the statutory pay-as-you-go procedures.
Federal agencies subject to sequestration must implement budget reductions typically ranging from 5-7% on nonexempt programs. Certain mandatory programs such as Social Security, Medicaid, and unemployment insurance are generally exempt, while other programs including many defense and domestic discretionary accounts face cuts. Agency CFOs and budget officers must adjust spending plans and obligations accordingly.
What to do next
- Review agency budget allocations for sequestration impact
- Identify exempt vs. nonexempt accounts in agency budget
- Update spending plans to reflect automatic cuts
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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.
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Presidential Document
Sequestration Order for Fiscal Year 2027 Pursuant to Section 251A of the Balanced Budget and Emergency Deficit Control Act, as Amended
A Presidential Document by the Executive Office of the President on 04/09/2026
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Document Details Published Content - Document Details Agency Executive Office of the President Document Citation 91 FR 18273 Document Number 2026-06962 Document Type Presidential Document Presidential Document Type Presidential Order Page 18273
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Document Details Published Content - Document Details Agency Executive Office of the President Document Citation 91 FR 18273 Document Number 2026-06962 Document Type Presidential Document Presidential Document Type Presidential Order Page 18273
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( printed page 18273) Order of April 3, 2026
Sequestration Order for Fiscal Year 2027 Pursuant to Section 251A of the Balanced Budget and Emergency Deficit Control Act, as Amended
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.
Filed 4-8-26; 11:15 am]
Billing code 3395-F4-P
Published Document: 2026-06962 (91 FR 18273)
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