A article at the link below is like a mini Sequester for Dummies informative report.
In this case sequester is used as a noun meaning general cut in government spending.
The current sequester is a group of cuts to federal spending set to take effect March 1, barring further congressional action.
But wasn’t that supposed to happen on New Year’s day to avoid the fiscal cliff?
Yes, however a deal was reached to avert the cliff, in which the sequester was delayed to March 1, which is the date of the new fiscal cliff.
The report at the link below not only defines sequester it spells out which programs will be cut or reduced and by how much.