Oregon faces federal funding cuts impacting essential services

Oregon's state government is concerned about potential cuts to federal funding. The state relies heavily on federal funds, estimated at about $40 billion over the next two years. With changes under the Trump administration, this funding is at risk. Transportation grants have already been significantly affected, with $2 billion in federal grants currently frozen. This includes $1.5 billion earmarked for replacing the Interstate 5 bridge between Oregon and Washington. Lawmakers are uncertain if funding for critical programs like Medicaid will decrease as Congress considers spending cuts. State leaders must create a two-year budget by the end of June without knowing the final amount of federal funding. Governor Tina Kotek and state lawmakers have been cautious in discussing potential cuts and their impacts on services vital to many Oregonians. They highlighted the critical importance of federal funding for education and human services. Recent analyses suggest that if federal spending is cut by 10%, Oregon could lose approximately $3.6 billion in funding for essential services over the next two years. These funding cuts could impact programs for low-income families, children, and individuals with disabilities. Staff for Oregon's government have been closely tracking federal funds affected by Trump’s executive orders. While many funds have been restored, transportation funding is still uncertain due to new guidelines being applied. With economic uncertainties looming, including the potential for a recession, Oregon's budget writers are preparing for various scenarios. They aim to maintain a financial cushion to manage any economic downturns that may affect state resources.