Request for Reconsideration of Determination Concerning Sequestration of Funds Under P.L. 99-177

B-221498.8: Feb 19, 1986

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Thomas H. Armstrong
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GAO reconsidered whether two Department of Treasury accounts, from which payments are made to Puerto Rico, are subject to sequestration under the Balanced Budget and Emergency Deficit Control Act. GAO found that: (1) expenditures from both accounts are made under permanent indefinite appropriations which are subject to sequestration unless they fall within specific exemptions, exceptions, or special rules of the act; and (2) the fact that the funds are intended for the benefit of Puerto Rico and are collected and held in trust by the United States is not a sufficient ground to consider the payments exempt from sequestration.