Federal education funding for the 2013-2014 school year faces cuts due to automatic across-the-board reductions from sequestration that took effect on March 1st and will total $3 billion. The final FY2013 appropriations package level funds education at FY2012 levels but does not avoid sequestration cuts. The House and Senate budget proposals for FY2014 are far apart, with the House proposing deeper cuts, so another continuing resolution is expected. Schools should plan budgets accordingly to account for the sequestration reductions in the coming school year.