NC Budget and Tax Center, Trump Administration

Federal Budget: The good, the bad, and the 10 major state and local grants that would be cut the most this year

It is expected that House and Senate leaders in Congress will push through a federal omnibus spending package this week before a government shutdown deadline Friday evening. If passed by Congress and signed by President Trump, the legislation would keep the federal government running for the rest of the 2017 fiscal year, which ends on Sept. 30.

The good news: Funding levels for many of the federal programs that state and local governments rely on are largely unchanged from the previous fiscal year in the roughly $1 trillion spending deal. Additionally, it appears that Congress may have an understanding of the negative impact of Trump’s proposed budget cuts because the spending package agreed to by Republicans and Democrats does not align with many of Trump’s stated goals.

The bad news: This week Congress will pass the easy bill. It gets much harder later this month when the 2018 fiscal year budget cycle starts. Additionally, it does not help that President Trump made the dangerous and irresponsible suggestion this week that he would support a government shutdown this fall, despite his administration saying repeatedly in recent weeks such an outcome was never desirable.

The cuts: The table below shows the 10 major state and local grants that would be cut the most this fiscal year compared to last year’s budget (2016 fiscal year).

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