Simply put, sequestration is the cancellation of budgetary resources — an “automatic” form of spending cutback.
The debt ceiling was raised in 2011 in exchange for 1.2 trillion in spending cuts, which were to be determined by a bipartisan group of senators and representatives, a ‘super committee’, in 2013.
If no deal is reached by this committee then automatic, across the board cuts of 10% will go into effect.
The programs the public is most concerned about Medicare, Medicaid, nutrition assistance are, for the most part, spared the budget axe. The cuts are automatic, across-the-board reductions to all discretionary programs unless exempted by the BCA.
What is included are deep cuts in military spending.
Take a look at the chart below . It lays out clear numbers of what will get cut.