NLC REPORT: Presidential Actions Summary: Impact to Local Governments

The information contained in this article is not intended as legal advice and may no longer be accurate due to changes in the law. Consult NHMA's legal services or your municipal attorney.

The Trump-Vance Administration is moving swiftly to enact President Trump’s agenda through existing federal programs across all federal agencies, including those that directly support local governments with grant funding, technical assistance, and other resources. To advance the President’s agenda, the Executive Branch can, and often does, use existing presidential authority to enact policy changes that do not require the approval of Congress. The Trump-Vance Administration is both exercising Executive Authority to enact policy changes through a series of Executive Actions and working with leaders in the Congressional majority to carry out his agenda. This approach is common to all modern presidencies. 

At the same time, through this series of Executive Actions, the Executive Branch under President Trump would expand presidential authority in ways that call into question commonly accepted Legislative Branch authority over program authorizations and public spending, otherwise known as Congress’s “Power of the Purse.” So long as disagreement persists over these issues, federal grantees including local governments, and other beneficiaries, may encounter uncertainty about their ability to access federal grant funds, and state and local governments in particular may be challenged
on policies that are traditionally under the purview of state authority and local control.

Recently, the budget office of the White House issued OMB Memorandum M-25-13 that ordered federal agencies to “temporarily pause all activities related to obligations or disbursement of all Federal financial assistance” while the new Administration reviewed all federal programs for alignment
with the Trump-Vance agenda. Following confusion and possible misunderstanding over the order, that Memorandum was rescinded by the Administration a day later. Although the memorandum ordering federal agencies to freeze federal funding broadly across multiple program areas was
rescinded, local government’s ability to regularly access federal grant funding awarded to them remains uncertain. 

NLC is communicating with the White House, federal agencies, and Members of Congress on these issues and advocating for local governments. Local leaders with questions regarding the status of their grants or the impact of Executive Actions on local decisions can contact NLC’s Federal Advocacy Team at advocacy@nlc.org. Questions regarding specific grants will be shared with the appropriate federal office. 

Head to the NLC website for a summary of Executive Actions that could impact local governments both positively and negatively as the Administration pursues its policy goals. NLC will continue to seek guidance from the Administration and educate members on any new Executive Actions or amendments to existing actions.