Oregon officials are facing uncertainty about federal funding under the Trump administration, with potential cuts looming that could have significant impacts on state programs. While most federal money allocated to Oregon remains flowing as Congress intended, $2 billion in transportation grants, including funds for the Interstate 5 bridge, are currently frozen for review.
Republicans in Congress are considering cuts to federal funding for programs like Medicaid, which could result in billions of dollars less for Oregon. State leaders are unsure how to plan for these cuts, with Governor Tina Kotek acknowledging the challenges ahead.
Legislators are being cautious in preparing a two-year budget without knowing what Congress will do. With concerns about a potential recession and the impacts of federal funding cuts on Oregon’s economy, state budget writers are focusing on core programs and services for Oregonians. They hope to set aside a cushion of $589.5 million in addition to projected state revenues for the 2025-27 budget.
Despite the uncertainty, efforts are being made to assess the impact of potential cuts and prioritize critical funding areas. Oregon’s Legislative Fiscal Office is closely monitoring federal funds and their impact on the state, especially in crucial areas like transportation projects. As state officials navigate this uncertain funding landscape, they are working to ensure that essential services for Oregonians are protected.
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