Right on the money about people leaving.
This plan not only hurts long term science but short term as well. With Fermilab having to layoff people, and have them leave for better opportunities, it hurts current projects like the Compact Muon Solenoid (CMS) at CERN.
Fermilab is a major contributor to CMS, and this will lay off a tonne of people or chase them off to industry right as the LHC turns on.
The US has pumped a pile of cash into CMS, and this is all endangered since the CMS guys are just as likely to jump ship.
So far people seem to be focussed on the future experiments, but this will be just as damaging for LHC in the short term.
[Disclosure: I work for Fermilab on CMS and there are a lot of people talking about leaving now, me included, we get to choose between commitment to science or paying the mortgage and feeding the family]