States, Cities Face Funding Collapse Threat With Trump Cuts

May 7, 2025, 10:00 AM UTC

In city halls and state capitols across the US, officials are readying for President Donald Trump and Elon Musk’s aggressive cost-cutting campaign to land on their doorsteps.

State and local governments — in both Republican and Democratic strongholds — rely on federal dollars for the infrastructure investments, social programs and other projects that undergird their economies. Now, a wide swath of the $1 trillion in annual grants they receive from the federal government is under threat, creating deep uncertainty just as Trump’s trade war has raised fears of a punishing recession.

In St. Louis, a curfew-check program for juvenile offenders was suspended ...

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