In November 2011, after months of debate, Congress was unable to arrive at an agreement to gradually reduce the U.S. deficit. As a result, they deferred any decision by implementing a process called sequestration, scheduled to take effect in January 2013. This draconian option was thought sufficient to motivate both political parties to focus on resolving their differences. It was never intended to actually take effect, as it will trigger across- the- board spending cuts of $1.2 trillion over 10 years to both domestic and defense programs. For more info: www.nafcu.org/nifcus