Broadly, sequestration involves spending cuts mandated by the Budget Control Act of 2011, which take effect on Jan. 2, 2013, unless Congress and the administration agree on a solution. There is significant uncertainty over how sequestration would work, and many groups, including AIA, are seeking clarification from Washington.
Hess shared his perspective on the detrimental consequences that sequestration could cause on the defense industry and urged the White House for more clarity.
"As an industry, we are already seeing the impacts of potential sequestration budget cuts today," Hess said. "Companies are limiting hiring and halting investments - largely due to the uncertainty about how sequestration cuts would be applied."
Click here to read the full text of the testimony.
Coverage:
- Defense company execs warn of layoffs if cuts go through (Federal News Radio)
- Defense executives plead for Congress to avoid budget cuts (Reuters)
- Defense Contractors Say Hiring Slows Before Budget Cuts (Bloomberg)
- Defense contractors speak out against budget cuts (Washington Post)
- Aerospace execs tell Congress that 'sequestration' will cost jobs (Los Angeles Times)
- Aerospace industry fears looming defense cut, lack of R&D (Seattle Times)
- CEOs in Crossfire At Sequestration Hearing (AOL Defense)
- Defense executives warn of dire cuts (Politico)
- Defense firm chief says tax hikes should be on sequester table (The Hill)
- As Defense Cuts Loom, Weapons Makers Say Tax Hikes Should Be On The Table (Huffington Post)
- Industry Execs: Don't Rule Out Tax Hikes to Avoid Defense Cuts (U.S. News)
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