Sequestration Deal Unlikely

Calls to avoid sequestration are going unheard in Congress.

Across the board spending cuts are set to take effect March 1, but both Republican and Democrat lawmakers say an aversion deal is unlikely, according to the Washington Post.

The paper reports that the effects of sequestration are not considered to be as severe as other fiscal deadlines, such as the fiscal cliff. Therefore, many financial markets are not pushing the issue.

“I think it’s more likely to happen. And I’m ashamed of the Congress, I’m ashamed of the president, and I’m ashamed of being in this body, quite frankly,” says Sen. Lindsey O. Graham (R-SC), according to the Washington Post.

The cuts pose devastating impacts on companies in the aerospace industry, especially those with defense contracts. Without a deal, defense face $500 billion in cuts over the next 10 years.

In a statement in January, Aerospace Industries Association President and CEO Marion Blakey urged Congress to find a solution. She said the Pentagon will be forced to send nearly a million furlough notices to civilian employees without a deal.

“Those notices will inevitably become layoff notices if nothing is done,” Blakey said.

“Sequestration is a slow motion catastrophe for our military forces, our space program and virtually every critical function of our government from air traffic control and border security to food inspection and more,” she concluded.