[Comments on Operating Differential Subsidy Program]

In response to a congressional request, GAO commented on the treatment of the Department of Transportation's Operating Differential Subsidy (ODS) Program under the Balanced Budget and Emergency Deficit Control Act of 1985, specifically whether the program should be excluded from sequestration in subsequent fiscal years. GAO noted that the Office of Management and Budget (OMB) and the Congressional Budget Office (CBO) did not include the ODS program in fiscal year (FY) 1986 and FY 1987 as a sequesterable item. GAO concluded that OMB and CBO properly excluded the program as a sequesterable item, since obligated balances are exempt from reduction.