Sequestration and the CDSOA Account
In accordance with the federal laws governing sequestration, the President ordered the reduction of “direct spending budgetary resources for fiscal year 2014 in each non-exempt budget account . . . by the amount calculated by the Office of Management and Budget.” See Sequestration Order for Fiscal Year 2014 Pursuant to Section 251A of the Balanced Budget and Emergency Deficit Control Act, as Amended, 78 Fed. Reg. 22,409 (April 10, 2013). The calculation of the Office of Management and Budget (“OMB”) requires a reduction of 7.2% of the monies available in the CDSOA account in Fiscal Year 2014. As noted in the President’s order, this “sequester” was required by Section 251A of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Control Act of 2011 – it was not a discretionary act on the part of CBP. Additional information regarding sequestration, including the OMB Sequestration Reports to the President and Congress for each fiscal year, is available on OMB’s website at http://www.whitehouse.gov/omb/legislative_reports/sequestration. In these reports, the CDSOA account is identified as the Department of Treasury, Fiscal Service account number 015-12-5688. As is noted in OMB’s Report to Congress on the Joint Committee Reductions for Fiscal Year 2015, the CDSOA account will again be subject to sequestration in Fiscal Year 2015, at the rate of 7.3%.
Impact on ADPs
The amounts paid to all affected domestic producers in November 2014 were reduced by 7.2% as a result of the Fiscal Year 2014 sequester described above. On March 17, 2015, OMB concluded that the amounts sequestered in the CDSOA Special Account during Fiscal Year 2014 and Fiscal Year 2015 would become available in the subsequent fiscal year. As a result of OMB’s determination, CBP is preparing supplemental disbursements to the affected domestic producers who received payments in November 2014 for their pro-rata share of the funds that were temporarily reduced via sequester during Fiscal Year 2014. CBP anticipates that the supplemental disbursements for Fiscal Year 2014 will be issued within the next sixty days.
For additional questions, contact Kim Cochenour at (317) 614-4462 or email CDSOA@cbp.dhs.gov.