What is sequestration? Published March 29, 2013 WESTOVER AIR RESERVE BASE, Mass. -- Sequestration, sometimes called the sequester, is a process that automatically cuts the federal budget across most departments and agencies. Congress included the threat of sequestration in the Budget Control Act of 2011 as a way to encourage compromise on deficit reduction efforts. Congress couldn't agree on a budget by the deadline set in the Budget Control Act, so mandatory budget cuts were scheduled to go into effect Jan 2. The American Taxpayer Relief Act on Jan. 2 pushed the budget cuts back until March 1. With the March 1 deadline now passed, sequestration and its $85 billion in spending cuts went into effect. (Article from USA.GOV)