There will be no budget cuts because of sequestration in fiscal 2015, much to the relief of federal agencies.
The Office of Management and Budget sent aÂ letter and reportÂ to Congress Jan. 20, detailing why the reductions to agency discretionary budgets will not be necessary as called for under the Budget Control Act, also known as Sequestration.
OMB stated the defense discretionary budget for 2015 is $585.9 billion, down from $606.3 billion last year. For non-defense discretionary spending, agencies will have $514.1 billion, which is up from $504.8 billion in 2014.Â “OMB estimates that discretionary appropriations are at the defense cap, while non-Defense appropriations are nearly $3.7 billion below the budget authorizations set in the [Budget Control Act],” OMB wrote in the report.
This is the second straight year that Congress and the White House approved a budget that will not require additional cuts. In 2014,Â discretionary budget allocationsÂ stayed under the Budget Control Act caps.
The administration estimates the discretionary spending to increase in the out years for non-defense spending, and continue the defense budget’s decline in 2016, but slowly increase through 2021.