NSF grants are already hard enough to get as it is. A reduction of the budget to this extent would just make it a total waste of time to apply for NSF grants. It would have the effect of pushing academics further towards industry funding - which might be the entire point.
Industry funding is incredibly selective, and many industry funders are basically looking to turn university researchers into extensions of their R&D divisions. This will be disastrous for the concept of academic freedom - and the ability for people to explore interesting problems that might not have immediate commercial impact.
Industry funding is incredibly selective, and many industry funders are basically looking to turn university researchers into extensions of their R&D divisions. This will be disastrous for the concept of academic freedom - and the ability for people to explore interesting problems that might not have immediate commercial impact.