Federal Grants to States Subject to Sequester

PEW CHARITABLE TRUSTS INFOGRAPHIC Federal Grants to States Subject to Sequester Vary Widely Across Program Areas The American Taxpayer Relief Act of 2012 postponed the automatic across-the-board budget cuts under the sequester until March 1, 2013. While the scheduled reductions in fiscal year 2013 funding were decreased from $109 billion to $85 billion, the grant programs subject to sequestration remain the same. sequester. But, the percentage of funding in each program area that would be vulnerable to any cuts varies greatly. States continue to face a great deal of uncertainty about how the cuts could be implemented and their specific impacts on state budgets and economic activity. For more detail on the importance of federal grants to state budgets, please see The Impact of the Fiscal Cliff on the States report. Grant funding subject to the sequester Grant funding exempt from the sequester O Total grants to states (billions) Overall, about one-fifth of federal grant funding to states would be subject to the Community & Regional Development 100% Income Security & 38% Social Services 100% Employment & Training 3% Health $85.5 100% Education $283.9B 4% Transportation $37.8 $50.1 88% Energy, Environment & Natural Resources 100% Other* *Other category includes General Government, Administration of Justice, and Agriculture grant programs. NOTES: The FFIS grants database captures approximately 92 percent of all federal grants to government entities. This analysis includes grants to states and the District of Columbia and excludes unallocated funds and grants to the territories. Additionally, direct payments to individuals under the Supplemental Nutrition Assistance Program (SNAP) and Pell grant programs are excluded. SOURCE: Federal Funds Information for States (FFIS) BCA Database, FY2013 estimates. Accessed January 10, 2013. Pew Charitable Trusts, 2013 Infographic by Evan Potler and Andreas Westgaard