Earlier this month, the Administration for Children and Families (ACF) at the U.S. Department of Health and Human Services (HHS) sent a letter to states regarding the impact of sequestration on Community Services Block Grants (CSBGs). The letter indicates that ACF is required to reduce overall payments for fiscal 2013 by 5.0 percent to implement the sequester. Given that payments have already been made for the first two quarters of the fiscal year, the letter explains the remaining quarterly payments will be reduced by roughly 10 percent. A similar letter was sent to states about the Social Services Block Grant (SSBG) program. SSBGs, a mandatory spending program not exempt from the sequester, are subject to a 5.1 percent reduction as a result of the sequester. Therefore, the remaining quarterly payments for fiscal 2013 will be reduced by approximately 10.2 percent. Both letters indicate that additional details will be provided by grant management staff at a later date.

Link(s): CSBG Letter; SSBG Letter