The sequester is set to take effect March 1st if political leaders don't reach an agreement. $85 billion in cuts would slash funding for national and local entities funded by federal dollars.
Charlottesville Regional Chamber of Commerce President, Tim Hulbert, says that Charlottesville and the surrounding area has about a half billion dollar worth of federal presence.
This is including the University of Virginia and it medical center.
"They clearly would have to pare back is if sequestration were to happen," said Hulbert.
A statement released by UVa's President Teresa Sullivan reads in part, "These cuts would affect our research funding and our financial aid programs in significant ways. One analysis indicates that there would be cuts of $2.3 billion for the National Institutes of Health and $456 million for the National Science Foundation, with similar cuts at other agencies that support U.Va. Research."
"Our economy is moving along here in our community. Retail sales are up; unemployment is at a 4.4 percent rate. The economy is moving forward slowly but surely and the last thing our economy or the nations economy needs is to get hit in the face with a two by four," said Hulbert.
A statement released by Northrop Grumman in part reads, "Like others in our industry, Northrop Grumman is very concerned about sequestration's serious negative consequences for national security and the defense industrial base." The statement goes on to say, "We decline to speculate on various possible outcomes and how they might impact the company."