POSTED: Friday, March 1, 2013 - 4:28pm
UPDATED: Thursday, April 4, 2013 - 6:26am
Hidalgo County, TX (NEWS CENTER 23) — The day has arrived for across the board government spending cuts to kick in. Currently there is no chance that congress will take action to avoid the sequester cuts. In fact, the House and the Senate pretty much wrapped up for the weekend Thursday afternoon, with no fix in place, doing nothing to avoid the cuts.
UTPA Finance Professor, Dr. Dave O. Jackson says, "If no negotiation is made by congress, then the president is going to have to sign the bill for the sequester cuts."
Some of the huge impacts include: cuts for people who receive federal unemployment checks, they will see checks cut by 9%. And Disability payments will also be delayed for weeks, along with federal small business loans that would also be slashed.
In total the $85-billion dollar cut will be equally split between defense and non defense programs.
Last minute alternatives were dead on arrival Friday, one by Democrats with new taxes to protect domestic programs and the another from Republicans who want to re-work cuts to soften the blow to defense. But both failed.
Jackson says, "We have no agreement, we basically have two extremes in congress."
So because there's no agreement that means the cuts will take place before midnight on Friday.
And although some of the cuts still aren't official, locally there could be a huge impact within border security. This would also include $70-million in educational cuts, which would take place throughout the state of Texas.
So what happens by 11:59 p.m. when these cuts take into effect?
The impacts won't be immediate, instead they will be gradual, but in the long term will have some major effects.
On Friday President Barak Obama spoke out, displeased, even calling the decision a dumb one by congress who he says has allowed these cuts to take place.