President Obama signed an order Friday night, which authorized the start of sequestration, an $85 billion reduction in federal defense and domestic spending between now and October.
The sequestration could affect North Carolina businesses, by cutting the pay of their customers, civilian military workers.
The sequestration could affect almost 25,000 civilian defense workers in the state- they could face furloughs of one day a week. The lost work would amount to 20 percent less pay.
Less pay for civilian workers means they would spend less at local businesses.
Joseph Funk is the owner of a tattoo parlor on Marine Boulevard in Jacksonville. He said the majority of his customers are from the military.
"My business runs off the military and cuts would be really bad in this town," said Funk.
Maurice Butler has worked at a barber shop on Marine Boulevard for ten years. He says it's the military haircuts that bring in the business for the shop.
"They count for more than 50 percent of our money and that would really be a bad thing to happen," said Butler.
Sequestration could also affect state programs that rely on federal money such as education programs, construction programs, and more.
Also, a couple of North Carolina airports could possibly lose their Air Traffic Controllers.