If these priorities are implemented states and cities would need to expand or create new programs themselves. Not all programs, or local governments, are created equal; large cities may be able to cope in part or whole, but it is doubtful smaller and rural jurisdictions would be able to make up for the loss of federal participation.
The Federal government is currently operating under a Continuing Resolution (CR) in the absence in a formal budget. The CR will need to be renewed April 22nd, and with Sequestration still in effect, there would be substantial program cuts at that time. For further coverage: