not to worry anyone...

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I actually was at the AAP legislative conference in March and while it was noted that this was on the horizon, no one in their federal affairs contingent seemed too concerned just yet. I also know that at the national peds department chair meeting, a joint letter was signed by all the directors present and sent to D.C. protesting the proposed cuts. So it's on people's radars in a "return to clinic in 3 months" sort of way.

Yes, it's scary, and at the moment it isn't even a decrease in funding, it's a complete omission from the budget (and likely not a mistake). But I agree with the above sentiment. Until more is said about the cut actually moving forward, the only thing to fear is fear itself.
 
Not panic, but concern. The President's budget is actually of little concern, since the actual budget must be written by the House and pass the Senate. This is more or less a "wish list" that signals what sort of cuts the President will accept in the end, and is sometimes used to activate a particular constituency to engage in the process. More concerning would be the absence of the Children's Hospital GME from the House budget (which is, I think, what happened in the Ryan budget).
Most of the residency programs in the country are funded through Medicare including the Pediatric programs at General Hospitals, so this isn't quite as bad as it looks.