As you are likely aware, due to the failure of Congress to reach a deal on balanced deficit reduction to avoid sequestration, the President on March 1 was required by law to issue a sequestration order canceling approximately $85 billion in budgetary resources across the Federal Government for the remainder of the Federal fiscal year. This notice provides information about the impact of these automatic spending cuts on the Division of Federal Employees’ Compensation Program. DFEC has made every effort to reduce its operating budget in ways that would minimize the impact of budget reductions on the crucial services we provide. Under sequestration, DFEC staff will be furloughed for up to three days in FY 2013. Furlough days will be scheduled on a rotating basis in an effort to minimize the impact on customer service. Compensation payments to injured workers who are paid on the periodic rolls will be made on schedule, but there may be delays in the adjudication of claims and other claims-related processes. If you have questions, please contact the DFEC Branch of Technical Assistance at 202-693-0040.