"They want to make sure the American public knows this sequester is a bad thing, but they also don't want to disrupt the economy too much," he said. "It's not that the reductions won't take place. But they could delay the impact of that until later in the year."Administration officials also say the Treasury Department is prepared to begin reducing subsidies that cover interest payments by state and local governments on public works, school and renewable energy projects. That means those governments will have to find money in their budgets to make up the difference in bond interest payments, and while that might not affect projects already under way, it could delay new construction efforts.
Jobless, Cities Could Be First To Feel Budget Pain
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