Sequester Impacts Families

by Alex Porter ’13

On March 1, $85 billion in automatic federal government spending cuts began. Weeks later, the full effects of these cuts, commonly referred to as either sequestration or the sequester, are beginning to be felt, particularly in areas like Montgomery County, where federal agencies are some of the largest employers.

In 2011, the U.S. Departments of Health and Human Services (which includes the National Institutes of Health), Defense and Commerce were the largest employers in the county. Like all agencies, these have faced significant challenges in adapting to the cutbacks, such as reduced benefits, shortened work weeks and canceled programs.

Senior Vik Siberry, whose parents work for NIH, is aware of the burdens they now face at work. Siberry’s parents have seen canceled business trips and reduced grants for research, and they expect these restrictions to continue for the rest of the year. Research and development agencies like NIH have had their budgets cut between 5.1 and 7.3 percent, with these amounts set to remain for the next eight years.

Few saw the sequester as likely to happen until immediately before it was signed into law by President Barack Obama. Initially scheduled for January 1, it was delayed for two months, and many expected it to be delayed further.

However, Congressional Democrats and Republicans did not reach any agreement to avoid or further postpone it, and the federal government has been forced to adapt to austerity. Even after it went into effect, the consequences were thought to be so severe that Congress would change its mind and cancel sequestration. Siberry says his parents were among those who doubted that the sequester plan would last, thinking it would either “not happen or would only last for two weeks.”

Legislative action has already been used to reverse the effects of the sequester in the case of military tuition assistance. The Army, Marine Corps, Air Force and Coast Guard all planned to suspend college tuition aid for service members to manage their reduced funding. Before the end of March, Congress voted to force the Department of Defense to reinstate the assistance and make the cuts elsewhere.

Federal spending does not only affect government and its employees, but also the industries tied to them. Both of junior Asha Antoine’s parents previously worked for the federal government and are now contractors for it, and still feel the effects of budget cuts.

However, life at home seems unchanged for Antoine. “I personally don’t feel like the cuts have been affecting me,” she said. While aware of the potential for reduced work weeks for her parents and their employees, and saying her parents “were surprised” to see it pass, Antoine has not heard serious worries from her family about their future.

Sequestration is predicted to slow employment growth at the  expense of balancing the government’s budget, a strategy that many economists believe is only impeding economic recovery. While President Obama and many in Congress remain opposed to this arrangement, it has largely been accepted, with little talk of repealing it now. Government employees, families and associated industries now must endure the rest of the year with the reductions that have begun and prepare for more next year.