(CNN) - Lawmakers have known about this day since August 2011 - a day they say was never supposed to come - but nevertheless, it's here.
Starting Friday, the federal government is required by law to start cutting $85 billion from its budget over the next seven months, with a total of $1.2 trillion over the next decade.
New York (CNNMoney) - As Washington braces for automatic spending cuts, small businesses in the military town of Colorado Springs say they have been losing government business for months.
The general uncertainty facing federal agencies has trickled down to the companies that rely on federal contracts.FULL STORY
(CNN) - Today is the day lawmakers have known about since August 2011: the day those forced federal spending cuts kick in.
This Friday is also a day many never expected would come. After all, the cuts known as sequestration were designed to be so draconian that lawmakers would be forced to compromise and avoid them.
(CNN) - Two partisan-backed bills to avert the forced federal spending cuts failed as expected in the Senate on Thursday afternoon. Procedural votes on the plans fell short of the 60 votes required for either to move forward.
The Senate is now expected to adjourn for the weekend without a deal to avert the cuts, known in Washington as the sequester. The cuts are set to take effect Friday unless Congress and the President reach a deal.FULL STORY
Washington (CNN) – With the $85 billion in automatic spending cuts about to take effect, several major unions are launching a new ad campaign aimed at putting the blame on some leading congressional Republicans, including Senate Minority Leader Mitch McConnell of Kentucky.
They say there will be major problems if the cuts are not stopped.
(CNN) - President Barack Obama is taking his campaign against the forced federal spending cuts - set to take effect on Friday - before business leaders, telling them Wednesday evening that the cuts will be bad for their businesses and cause the economy to "tumble downward."
"Whether that can be done in the next two days," Obama said, pausing mid-sentence, then continuing, "I haven't seen things done in two days here in Washington in quite some time."
(CNN) - An email exchange between two old Washington hands – one, a longtime journalist, and the second, a source in the Obama administration – is at the center of a political controversy Thursday as two sides read the messages differently.
The veteran journalist is Bob Woodward, who broke the Watergate scandal and wrote a book about the debt ceiling negotiations in the summer of 2011. The Obama administration source is Gene Sperling, a senior economic aide to President Barack Obama and a veteran of the Clinton administration.
(CNN) - Veteran journalist Bob Woodward said Wednesday he was threatened by a senior Obama administration official following his reporting on the White House's handling of the forced federal spending cuts set to take effect on Friday.
"They're not happy at all," he said on CNN's "The Situation Room," adding that an e-mail from a senior administration official – who he would not name – communicated a message which caused him great concern. "It was said very clearly, you will regret doing this," he said.FULL STORY
Washington (CNN) - Education Secretary Arne Duncan says a West Virginia school district is laying off teachers due to deep spending cuts across the federal government set to take effect on Friday. But officials from that region say it's not true.
Duncan told reporters at the White House on Wednesday that the Kanawha County school system was already handing out pink slips in anticipation of the automatic cuts that, among other things, will impact the amount of federal money states get through September.