The Valley could be hit the hardest when it comes to cuts.
How will slowing the rate of federal spending impact us here in the Valley? The answer depends on who you ask.
From a meat packing plant in Fresno to the Navel Air Base in Lemoore,
some believe the Valley may feel the cuts more than other parts of the country.
"The average income in Fresno County, for example is much lower than the rest of the nation," said Fresno City College Economics Instructor, Aaron Pankratz.
For instance, Head Start and Early Head Start may be forced to close two sites in Fresno County. That's equivalent to 165 children and 32 employees.
Tamala Olspy with Fresno Head Start said, "Between our two programs, the five percent cut is over 1.4 million dollars."
That lost revenue could have a ripple effect in the Valley.
"Even for those who don't directly have a cut to their jobs or their families, we're gonna see reduced spending, because there's less money coming in," said Pankratz.
Congressman Devin Nunes said compared to the overall size of the federal budget this is just a first step.
"We either make some small targeted cuts now, or we pay the price later," said Nunes.
His Democratic counterpart Jim Costa disagrees.
"This fragile economic recovery could potentially dip us into another recession," said Costa.
Meanwhile, the head of Cargill Beef worries about the possibility of fewer federal meat inspectors.
"All meat processing facilities in the United States have to have USDA Meat Inspection to operate. If we do not have them, we do not operate," said John Nieman, General Manager of Cargill Beef.
And others worry about our military preparedness at Lemoore Navel Air Station.
"The people who don't make as much money, the airmen, the thirds, the seconds, the firsts...we're the first to see the impact," said Ashely Cyrus from Lemoore Naval Air Base.
With or without the sequester, most in Washington admit it could take decades to balance the federal budget.