Yesterday, February 5, President Obama called on lawmakers to avert the automatic, across-the-board spending cuts scheduled to take effect under sequestration on March 1. If Congress is not able to get a large budget deal before the sequester deadline, the President recommends that Congress pass a smaller package of spending cuts and tax changes (such as closing corporate tax loopholes) to postpone the sequester cuts for a few months. "There is no reason that the jobs of thousands of Americans who work in national security or education or clean energy, not to mention the growth of the entire economy should be put in jeopardy just because folks in Washington couldn’t come together to eliminate a few special interest tax loopholes or government programs that we agree need some reform," President Obama said. Senate Majority Leader Harry Reid (D-NV) has expressed a desire to pass a legislative measure to replace sequestration, but has also said that this may not occur until after the March 1 deadline. Meanwhile, House Speaker John Boehner (R-OH) responded to the President’s statement, saying that “Americans do not support sacrificing spending cuts for more tax hikes,” and that the sequester “should be replaced with spending cuts and reforms that will start us on the path to balancing the budget in 10 years.”

Faced with the looming threat of sequestration, the federal Office of Management and Budget (OMB), according to media reports, began circulating a draft memo earlier this week for use by agency heads to notify their staffs of potential furloughs in the event that sequestration takes place. “We will use any and all flexibilities we have to protect our core operations and mission,” reads the draft memo. “However, our ability to do so will be limited by the rigid nature of the cuts imposed by Congress.”

Link: President Obama Remarks