As of now, sequestration remains in effect under current law for fiscal 2013 until fiscal 2021. However, it is important to note that the sequester operates differently in future years than it does in fiscal 2013 under the Budget Control Act (BCA) of 2011 (PL 112-25). In fiscal 2013, the required savings of $85 billion under sequestration were to be achieved through across-the-board spending cuts for non-exempt discretionary and mandatory programs. In contrast, in fiscal 2014-2021, the required $109 billion in annual spending reductions will be achieved through lowering discretionary spending caps defined in the BCA for non-exempt defense spending and non-exempt domestic spending. This means that specific federal program funding levels will be set by the regular appropriations process and will need to adhere to these caps. The few mandatory programs that are not exempt from the sequester will be impacted by the sequester in the same manner for future years as they are in fiscal 2013, and thus will be subject to automatic across-the-board cuts. Lawmakers may decide to pass legislation that would modify the sequester for future fiscal years. There is also still discussion in Congress about providing agencies more flexibility to manage the fiscal 2013 sequester cuts.

Link: PL 112-25