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Uncertainty in federal cutbacks puts $92M in local funding in jeopardy

Uncertainty in federal cutbacks puts $92M in local funding in jeopardy
April 09
10:00 2025

As President Donald Trump continues to gut federal departments and programs, the City of Winston-Salem is at risk of losing $92 million in federal funding.  

The city receives federal funding for various programs and projects, including those related to community development, housing, homelessness and transportation, with funding sources like Community Development Block Grants (CDBG), HOME Investment Partnership (HOME), and Emergency Solutions Grant (ESG).  

The funding, initially promised by the federal government, has been allocated but not yet delivered. This delay poses significant challenges as the city approaches its budget season. We’re concerned that, based on the executive orders that have been coming out and our conversations with federal agencies, as to are we going to get the money that we’ve been allocated,” said Pat Pate, city manager during a recent interview with The Chronicle. Our concern is we don’t have good clear answers yet on how all of that’s going to come down.” 

Not knowing how much federal funding the city will receive during budget season has thrown a wrench in the planning process for Pate and City staff. Pate is responsible for presenting the budget that has to be approved by the city council by the end of June.  

We’re always a little behind the eight ball in terms of trying to figure out what money are we really going to get,” Pate said. Unlike the federal government, I’m required to budget based on revenues we expect to receive, and they have to match the expenditures. So, if we’re not comfortable in knowing the revenues are available to us then, by state law we can’t budget for those.”  

Although most of the federal grants are in limbo, the city did recently secure a $5.2 million grant from the Federal Transit Administration (FTA). The grant will be used to support public transportation projects in the city.  

We are receiving trickles of good news; this week we actually received information that our FTA grant for some of our buses have been approved … so we’re going to be able to order those new buses that we had planned in the next month,” Pate said.  

 

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Tevin Stinson

Tevin Stinson

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