1 Mar 2013

US territories worried about sequestration

4:02 pm on 1 March 2013

US territory leaders have raised concerns about the impact federal budget cuts will have on the territories at an interagency meeting on insular territories in Washington DC.

The President, Barack Obama, is tomorrow expected to order a series of cuts to federal agencies in a bid to save 1.2 trillion US dollars over the next ten years.

The measure, called sequestration, will cut 85 billion dollars from the 2013 fiscal budget.

The Governor of Guam, Eddie Calvo, says while it is unclear what the impact sequestration will have on territories in the Pacific, they are still worried.

"There are the issues of sequestration, and what those impacts are to the territories. There's an old analogy that if there's a sneeze in the states, it will pneumonia in the territories and that fact is also relevant for sequestration."

Guam Governor Eddie Calvo