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Debt Deal May Increase risk of Sequestration

The federal debt limit extension deal passed by House Republicans last week assures that the federal government will not default on its loans through mid-May. But that might not be good news for Pentagon officials gearing up for the next showdown: sequestration.

Military budget experts say the extension deal could increase the risk that the automatic budget cuts set for March 1 will kick in — at least temporarily/.../

It’s a strategy that could backfire, said Todd Harrison, a military budget expert with the Center for Budgetary and Strategic Assessments, a Washington think tank.

“It’s interesting that both sides kind of use sequestration as their leverage to get something out of the other side, but the hostage can’t belong to both sides — or it doesn’t work,” he said. “That’s kind of the risk right now. If both sides think it’s giving them leverage and it’s not, it really could go into effect.”

Most agree the debt ceiling deal “puts more pressure on the sequestration debate than before because it takes other issues off the table,” said Heather Hurlburt, executive director of the left-leaning National Security Network.

Harrison agreed, adding, “Don’t think that’s good news for DOD.”

In the continuing budget fight, both parties are so well-entrenched in their opposition of other alternatives, such as tax increases or entitlement cuts, it’s possible that sequestration “may be the least common denominator between the two parties,” he said.

“And it may kick in, simply because they can’t find a way for both sides to agree to avoid it.”