The effect of the sequestration – Federal budget cuts – will not be fully felt until later this month when programs would receive new budgets but are not told to fold up instead.
But … that will only happen if US lawmakers allow the ‘financial punch’ to really hit home later this month.
Mandatory across-the-board US federal spending cuts of $US85 billion kicked into effect on the weekend because Republicans and Democrats can’t agree on a deal to tackle the US national debt.
One of the hardest hit sub-branches of government by the sequester is the Pentagon which is required to make a $US46 billion cut and must find more than half the money it needs for operations elsewhere.
“Let me make it clear that this uncertainty puts at risk our ability to effectively fulfill all of our missions,” new Defense Secretary Chuck Hagel said.
But the Pentagon isn’t alone with seeing it’s budget shrink substantially. Head Start programs in every US state, which offer daycare services to underprivileged children, face a 5 percent cut according to NBC New York.
Public school will also be severely effected by the sequestration. Texas state alone may lose $US334 million aimed directly at public education programs, resulting in 285 public schools losing their Federal funding beginning July 1 2013.
Special education, English language classes, nutrition programs, early child intervention and family protective services could also be hit.
The budget cuts may also put at risk the global economic recovery, the International Monetary Fund has warned.
President Obama said the cuts could cost 750,000 jobs and slow an already anemic US economic growth by 0.5 per cent.
Republicans however blame the Obama administration for failing to reach a deal.
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