On Mar. 1, 2013, as required by statute, President Obama signed an order that initiated the budget sequestration. The sequestration required National Institutes of Health (NIH) to cut 5 percent or $1.55 billion of its fiscal year 2013 budget.

The NIH was required by law to apply the cut evenly across all programs, projects, and activities, which were primarily NIH institutes and centers. This means every area of medical research was affected.

The Office of Management and Budget (OMB) previously issued a handful of guidance, directing agencies how to prepare for and implement the cuts.

The OMB has already told agencies to consider cutting contract spending, freezing hiring and even implementing furloughs. Earlier, OMB issued a memo on sequestration life, directing agencies to take even more specific steps to prepare for life under sequestration.