Sequestration: What The Politicians Are Not Telling Us

Sequestration exemptions

An executive summary provides a list of the most important exemptions:

• Social security benefits (old-age, survivors, disability) and railroad retirement benefits
• all programs administered by the VA and special benefits for certain WWII veterans
• net interest
• payments to individuals in the form of refundable tax credits
• unobligated balances, carried over from prior years, for nondefense programs
• at the president's discretion: military personnel accounts may be exempt entirely, or a lower sequestration percentage may apply

The actual list of exemptions is too long for the executive summary, but includes:

• activities resulting from private donations, bequests of voluntary contributions
• advances to the unemployment trust fund
• payments to various retirement, health are, and disability trust funds
• certain Tribal and Indian trust accounts
• medical facilities guaranty and loan fund
• specified federal retirement and disability accounts and activities
• prior legal obligations
• low-income programs, including Child Care and Development Fund; Child Nutrition Programs; Children's Health Insurance Program; Commodity Supplemental Food Program; Temporary Assistance for Needy Families; Family Support Programs; Federal Pell Grants; Medicaid; Foster Care and Permanency Programs; Supplemental Security Insurance
• Medicare Part D low-income premium and cost-sharing subsidies

To see the entire list (too long for the executive summary), the author of this document refers the reader to the "statute" itself. US Congresswoman Maxine Waters probably has a copy available upon request.

In addition to this list that is too long to even include in the executive summary, there is an additional list of budget line items are are protected by special rules.

Bottom line: the safety net for children and other social safety nets remain in place. When Congress passed the law, following the president's suggestion of a sequestration, it was done coolly, calmly, and collectively.

At the end of the day, the sequestration is pretty much all about jobs within the Beltway.