Homonym: Sequestration (Isolation)
Sequestration refers to the process of isolating or removing something from its usual environment. In legal terms, it often involves taking possession of assets or property to ensure they are preserved for future use, typically in the context of a court case. This can help prevent the assets from being sold or wasted while legal proceedings are ongoing.
In the context of government finance, sequestration can mean automatic spending cuts to reduce budget deficits. This process is often triggered when a government fails to meet certain fiscal targets, leading to reductions in funding for various programs and services, impacting areas like education, healthcare, and defense.