NC Budget and Tax Center

New report: Trump budget will put federal grants to NC and its local governments at risk

The Center on Budget & Policy Priorities (CBPP) has released a timely report titled “At Risk: Federal Grants to State and Local Governments”. The two major conclusions of the report are blunt: Federal grants matter to state and local budgets (accounting for approximately 30 percent of North Carolina’s state budget), and programs for low and moderate income families could bear the brunt of cuts based on proposals from President Trump and congressional Republicans.

This report comes out a few days before the White House is expected to release an outline of its 2018 fiscal year “skinny budget” on Thursday, March 16.

Here are three key points (and charts) from CBPP’s latest report that highlights some basic facts on federal grants and that North Carolinians should know:

  • Grants are at risk, and states cannot absorb the magnitude of the
    potential cuts without reducing services:
    The President’s forthcoming budget is reported to cut non-defense discretionary spending — the source of state and local discretionary grants — by $54 billion.” “In all likelihood, states and localities will be forced to scale back or eliminate services and programs for families, seniors, and people with disabilities, rather than raise their own funds to continue the programs at their current level.”
  • Grants are already at historically low levels: Discretionary (annually appropriated) grants to state and local governments in federal fiscal year 2015 were 1.05 percent of GDP, lower than in all but one year since 1980.”

  • Federal grants are vital to help finance critical programs and services on which low and moderate-income families and communities of every state rely on. Among the programs these discretionary grants support are:
    • Highways, airports, and mass transit
    • High poverty schools
    • Head Start
    • Community health centers
    • Training and employment services
    • Child protective services
    • Low-income home energy assistance
    • Child care

Check Also

Here’s how much climate change will cost each county in North Carolina

Climate change is not just an environmental issue, ...

Top Stories from NCPW

  • News
  • Commentary

This story has been updated with comments from Jim Womack, who did not respond earlier to questions. [...]

For the 18 months, Gary Brown has been traveling through northeastern North Carolina like an itinera [...]

It will be at least another month before state Superintendent Mark Johnson can take over at the helm [...]

Eric Hall, in the midst of a rainy drive to rural Robeson County to pitch North Carolina’s ambitious [...]

5---number of days since Senators Bill Cassidy and Lindsey Graham unveiled a new proposal to repeal [...]

The post The stench of hate speech appeared first on NC Policy Watch. [...]

When a Navy recruiter visited his high school, Carlos was among those students eager to sign up. In [...]

Website with ties to Civitas Institute promotes anti-Semitic attack on Attorney General Stein There [...]

Featured | Special Projects

NC Budget 2017
The maze of the NC Budget is complex. Follow the stories to follow the money.
Read more


NC Redistricting 2017
New map, new districts, new lawmakers. Here’s what you need to know about gerrymandering in NC.
Read more