the federal government is still going to spend more this year than last year..
There are some impacts though. For example, state and local governments that depend on federal funding for certain projects will have shortfalls. For that matter, there are quite a few programs that have mandated across-the-board cuts, which in some cases doesn't make much sense.
If you are running a $5 billion project to build an aircraft carrier, you can't just slash the cost of the carrier.
So there are impacts but of course any politician worth his stripes is going to predict the destruction of the American Way, the world will stop spinning, etc.