The effects on science and technology funding here in the States could be devastating. Here is the latest from Science Magazine.
My own take is that the Committee will, in fact, probably fail. But the mandatory cuts wont go into effect until Fiscal Year 2013, after the general election. With a new Congress and potentially a new Administration, the law certainly can be rewritten and probably would be.
The central point here is that science funding falls into the category known as discretionary (I know, Beltway-ese). Cuts in discretionary funding wont really do anything substantive to the budget deficit issues. For cuts to be meaningful, as far as the national debt and the deficit, they would need to be in the category called mandatory. Medicare and Medicaid are in this category–and health care is the elephant in the room.