Navigating Federal Shifts What Recent Decisions Mean for Minnesota Cities

By Andrew Tellijohn

Recent proposals from the second Trump administration to reduce Department of Homeland Security (DHS) and Federal Emergency Management Agency (FEMA) funding have prompted multiple states — including Minnesota — to file lawsuits seeking to prevent the changes. The litigation is ongoing, and state officials say the uncertainty has complicated planning for emergency preparedness.

If implemented, the reductions would cut $6.5 million from Minnesota programs that support emergency management training, exercises, and coordination established after the 9/11 attacks and Hurricane Katrina.

“These grants fund first responders’ salaries, pay for the training they receive, and support the mutual aid networks that allow them to mobilize when tragedy strikes,” wrote Minnesota Attorney General Keith Ellison in a statement announcing the lawsuit, the second filed in response to attempts to reduce previously allocated security funding.

The proposed reductions are among several areas in which the federal government has recently moved to scale back funding. State and local officials say these shifts are already affecting planning and operations in communities statewide, with more possible in the months ahead.

“The areas that were prioritized under the last administration are no longer prioritized under the current administration,” said Leah Corey, enterprise director for federal funding implementation at Minnesota Management and Budget (MMB).

States, cities, LMC monitoring changes

Some level of tension between local and federal priorities has always existed, but many officials describe the current pace and scope of federal shifts as unusually disruptive.

About one-third of state spending comes from federal sources. Roughly half of that is Medicaid, and Corey said cuts in that area may not immediately impact the state budget, but likely will significantly impact counties and providers across the state. Because counties rely on local property taxes to fund services, increased pressure on their budgets can lead to higher county levies, which directly affects cities and their residents.

Other areas, however, are already feeling the impact, especially programs involving outside partners or long-term planning, such as climate and sustainability initiatives. The state, Corey said, is continuing to assess potential state impact as it receives guidance from the federal government.

“The landscape for climate funding is just different than it was a couple years ago,” she said.

Recent changes have also affected federal support for local fire and emergency services. The Staffing for Adequate Fire and Emergency Response (SAFER) and Assistance to Firefighters Grants (AFG) — two programs many Minnesota fire departments rely on for personnel, equipment, and training — have seen notable reductions.

During the current term, the administration cut each program by $36 million, bringing their funding down to $324 million. It also paused or canceled other public safety grants, creating uncertainty for departments that were counting on federal dollars to maintain staffing or replace aging equipment. While Congress recently reauthorized AFG and SAFER through 2028, executive actions to freeze or cancel grants have already disrupted planned projects.

Another change came in August, when an executive order required grant-making agencies to have senior political appointees review all grant opportunities rather than career staff. State officials say the step has slowed or halted federal support for certain initiatives that had been routinely funded in the past, including some tied to diversity and inclusion efforts, while shifting emphasis toward programs the administration considers core priorities.

The state has also seen emergency management awards and Department of Justice grants aimed at violence prevention canceled. Transportation priorities have changed much less significantly. Though, Daniel Lightfoot, senior intergovernmental relations representative and federal relations manager at LMC, notes that many projects have been slowed by permitting delays.

“The relationship between the federal government and cities is very different than it was under previous presidents,” said Jeremy Bratt, a Washington, D.C. lobbyist focused on environmental, clean energy, and public sector issues that impact Minnesota. He noted that federal actions are increasingly affecting issues that local governments have traditionally managed on their own.

The rapid shifts have left state and local officials uncertain about how to plan for the coming year and how long the impacts could last.

“What makes this period of time challenging is there’s just so much change and so much uncertainty,” Corey said. “There’s a lot of work that goes into evaluating what is really impacted.”

What can cities do?

The state is tracking federal funding reductions and pauses on its website (bit.ly/FedFundingData) and hosting biweekly calls to provide updates on issues such as philanthropic giving, federal funding, the government shutdown that ended in November, and the legal developments surrounding many of these issues.

LMC is encouraging Congress and the administration to continue supporting local units of government. Lightfoot emphasized that public safety agencies rely heavily on federal programs for equipment, staffing, and disaster preparedness, and the League will continue pushing to maintain and restore funding wherever possible.

“We know that when those programs exist at the federal level to support locally identified goals, the outcomes in our communities are better,” he said. “They’re better for not just city operations, but they’re better for residents.”

Connect with Congress members

Cities leaders also have a role to play. Local governments have long been encouraged to develop and maintain strong relationships with their elected representatives, but during these periods of rapid policy change, those connections become even more important.

“Share your stories,” Lightfoot said. “Share how the reductions in funding or the cancelations of programs have negatively impacted the projects you are working on, the services that you provide your residents. Share your stories with us and share them with members of Congress.”

Bratt says local voices are especially important now. “Explain in plain language the impact that the shutdown or a freeze in federal grants is having on your communities,” he said. “Ask for their help.”

He encourages cities to be direct about their needs, such as requesting a letter of support for a grant, a legislative clarification, or assistance moving a stalled decision within a federal agency.

“Ask for what you need, make a plan to follow up with the elected official and keep pushing until you get it,” Bratt said. “The process of change in Washington is very slow. But persistent, consistent, steady work building relationships with your members of Congress and their staff and asking for their help on specific challenges is the only way things improve.”

Maintain meticulous records

Equally important, Corey notes that cities should also pay close attention to the terms and conditions of their current federal awards.

“Maintaining really good communication with program officers is really important,” she said. “Good documentation and record keeping — a lot of it is really those best practices associated with grant management that you would want to see in a city or any recipient regardless. But now it’s particularly important to be maintaining really meticulous records, staying on top of what you’ve agreed to, and being in good communication with both the state and federal government.”

Explore new funding opportunities

Cities may also benefit from exploring other funding sources. Some philanthropic organizations are working to support communities affected by federal reductions. “While they can’t replace the gaping hole that federal funds play,” Corey said. “That may be a place for cities to consider.”

Amid the challenges, officials say there may also be openings for innovation. The federal government will continue to be a major funder of public services, so cities may find opportunities where their priorities align with the federal direction.

“In a time of more limited resources, governments will need to consider new and different ways to deliver services,” said Ahna Minge, MMB assistant commissioner for budget services and state budget director.

She added, “I know something the state is reflecting on is how do we continue to lead and be the shelter from the storm or at least find ways to be innovative within the sphere of our own control.”

Legal tests ahead

Meanwhile, several lawsuits – including the DHS and FEMA case – will determine how far federal agencies can go in redirecting or withholding funding.

“We don’t know the outcome yet of the balance of powers between Congress’s power to appropriate and the executive branch’s to administer government,” Minge said.

The results will be critical not just now, but into the future, Bratt added. He said the outcome of current legal challenges will help define how much authority the executive branch has to redirect or withhold federal funds, and whether similar approaches might be used by future administrations.

Andrew Tellijohn is a freelance writer.