Army expects 300,000 jobs to be lost in sequestration cuts

6:01 PM, Feb 19, 2013   |    comments
(AP file)
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WASHINGTON -- The Army estimates automatic budget cuts scheduled to take effect March 1 will have a $15 billion economic impact and affect more than 300,000 jobs nationwide, according to documents obtained by USA TODAY.

Hardest hit states include Texas, Virginia and Pennsylvania. Among the least affected: Delaware, Wyoming, Montana and Rhode Island.

The military faces $500 billion in budget cuts over 10 years from sequestration -- automatic budget cuts. The Army anticipates that it will need to slash $18 billion in spending by the end of this fiscal year on Sept. 30.

"It reaffirms what we have continued to say about the serious implications that sequestration will have on our national defense and broader economic well-being," Rep. Adam Smith, D-Wash., and the ranking member of the House Armed Services Committee, said in a statement.

The cuts will affect every Army installation, according to the documents. States with large bases and military contractors are taking the biggest hits.

Texas, for instance, would face a $2.4 billion economic loss from the Army's budget cuts.

In Georgia, the Defense Department says there would be an economic loss of about $931 million, and more than 17,150 jobs would be affected.

The impacts would include 13,890 DA civilian employees furloughed, 199 private sector jobs lost from reduced military investments, 374 jobs lost from decreased military construction and 2,700 BOS contractor jobs impacted.

The Defense Department says there would be a loss of about $233 million in base operations, $76 million in acquisition and military industrial base investments, and $336 million in project cancellations relating to military construction, restoration and modernization. 

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