In a report required by law, CBO provides information on the limits that apply to discretionary budget authority in 2024. Because no statutory caps are in place for fiscal year 2023, there will be no sequestration for the current fiscal year.
By August 15 of each year, the Congressional Budget Office is required to publish its estimates of the limits (often called caps) on discretionary budget authority as established by the Fiscal Responsibility Act of 2023 (FRA, Public Law 118-5). CBO is required to provide projections of those limits for the current and the upcoming fiscal year, and to report on its estimates of the maximum allowable adjustment to the caps to account for funding designated for disaster relief. CBO also must estimate whether any appropriations enacted for the current fiscal year have exceeded the caps and thus would trigger a cancellation of budgetary resources, known as a sequestration. The authority to determine whether the caps have been breached rests solely with the Office of Management and Budget.
CBO is publishing this short report about the limits that apply to discretionary budget authority in 2024. Because no statutory caps are in place for fiscal year 2023, there will be no sequestration for the current fiscal year.
