On Jan. 2, 2013, if Congress and the president have not enacted legislation delaying or canceling a process known as "sequestration," $109 billion in automatic, across-the-board spending cuts will be applied to defense and non-defense programs in 2013. If these cuts were to occur, however, the White House would have substantial authority to mitigate and postpone the impact on those programs that are not exempt for several weeks. Moreover, large portions of the federal budget would be exempt from the cuts.