CSBG Dear Colleague Letter Sequestration Update April 18, 2013
The purpose of this message is to provide you with an update on the allocation of Community Services Block Grant (CSBG) funds for the remainder of fiscal year (FY) 2013.
On March 26, 2013, President Obama signed into law a full-year Continuing Resolution (CR) which provides funding for the government for the remainder of the 2013 Fiscal Year (through September 30, 2013). Ongoing funding for CSBG was included in this act.
As noted in earlier letters, CSBG is reduced by the Budget Control Act of 2011 via spending cuts called sequestration. CSBG is subject to sequestration. Because the first two quarterly allocations in FY 2013 for CSBG were issued based on prior year funding levels, the entire reductions from sequestration will be made to future allocations.
At this time we may only release a portion of the total third quarter allocation, with the remaining balance to be released in upcoming weeks. States will receive a one-month allotment based on the prior year funding levels. This one-month allotment will not be reduced to reflect sequestration reductions. Remaining allotment levels of the third and fourth quarters will be announced within the next several weeks and will be adjusted to account for the entire reduction from sequestration and the final CSBG annual funding level.
Thank you for your continued partnership with the U.S. Department of Health and Human Services and ACF, and for your cooperation as we work together to manage these complex and challenging budget circumstances.