Capping subsidies to contract employees would offset significant fraction of sequestration

Lawmakers desperately looking for ways to offset the devastating budget cuts required under sequestration should consider capping taxpayer subsidies for contractor salaries, the head of the American Federation of Government Employees said today.

Allowing agencies to fall off the fiscal cliff by failing to stop sequestration would drastically hinder their ability to continue providing vital services to the American people, AFGE National President J. David Cox Sr. said.

Fortunately, almost 10% of each year’s bill for the next 10 years of sequestration – more than $5 billion annually and $50 billion cumulatively – can be offset simply by capping taxpayer subsidies for contractors at $200,000 per year. In fact, the Army has officially estimated that the savings would be even greater.

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