Originally published 03/05/2013
WASHINGTON (February 28, 2013) — NEH Chairman Jim Leach today issued the following statement about the implications of sequestration on the National Endowment for the Humanities (NEH).“On Friday, March 1, nearly all federal agencies will have a portion of their funds reduced via a mechanism known as sequestration. By background, this situation arises from the terms of prior legislation that required Congress and the White House to agree on a balanced deficit reduction plan of a given magnitude. If an agreement could not be reached, an automatic, across-the-board reduction of funds —sequestration— was required to be implemented during this fiscal year. The President was expected to issue the sequestration order by January 2, 2013, but over the New Year’s holiday, Congress approved and the President signed legislation that postponed the automatic reductions until March 1.Preliminary estimates by the Office of Management and Budget (OMB) indicate that sequestration will require a 5 percent reduction in funding for NEH during this fiscal year, which commenced last October 1 and ends this September 30th. Concerned for the prospect of sequestration, NEH has put in place since last fall constraints on program commitments and administrative costs. Further uncertainty, however, exists with the looming mid-year budget negotiations.
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