This Month In Congress: What’s At Stake For Local Governments
In May 2025, the National League of Cities (NLC) highlighted significant federal legislative developments that could impact local governments. The Trump-Vance administration’s first 100 days saw proposals including budget reconciliation, a new tax bill, a spending rescissions bill, and FY2026 appropriations. These initiatives aim to reduce federal spending and shift responsibilities to state and local governments, potentially decreasing direct federal funding for local programs. OMB Director Russell Vought emphasized a review targeting programs deemed misaligned with “ordinary working Americans,” suggesting a reevaluation of federal involvement in services better managed locally.
The NLC expressed concerns about the potential reduction in federal support for local priorities, particularly in areas like infrastructure, public safety, and community development. While some regulatory relief might benefit local administrations, the overall decrease in funding could strain municipal resources. The NLC continues to advocate for maintaining robust federal-local partnerships to ensure communities receive necessary support and services.
