Cities and towns across Massachusetts are keeping a close and wary eye on the federal government as they shape their municipal budgets for the new fiscal year that starts this July.
Local leaders say federal funding cuts pushed by the Trump administration would force tough spending decisions at the municipal level, with housing, healthcare and education all seeing potential impacts.
Revere Mayor Patrick Keefe said his city receives $5 million to $7 million in annual reimbursements from the U.S. Department of Education. According to Keefe, much of that federal money goes toward food and health programs for students.
“If the rug gets pulled from underneath us, it could be catastrophic for some of those families and also for [the] city that is supporting them,” Keefe said.
Another big concern in Revere is potential cuts to the Community Development Block Grant program. The city gets $700,000 a year from the program that supports small businesses and community organizations.
And Keefe said he’s also worried about the potential loss of public safety efforts and anti-terror grants such as the Urban Area Security Initiative.
“When it comes to the water infrastructure around Boston Harbor, that’s a large grant that serves Cambridge, Revere, Chelsea, Everett, Somerville, Boston with $15 million that is at risk,” Keefe said, adding that the money is used to support efforts including water rescue programs and radio transmission support.
Questions about the future of federal spending is causing anxiety in Cambridge as well.
“We are facing a troubling and uncertain time, and there are parallels to five years ago, at the beginning of the pandemic, when so much was unknown,” said Cambridge City Manager Yi-an Huang as he led a discussion on the potential impact of federal funding cuts at a Cambridge City Council meeting earlier this month.
Huang said the city gets about $23 million in federal funding each year, with significant portions going to education, human services, healthcare and community development.
“We don’t know what path we are on or how fast events will unfold,” said Huang. “But there is growing and strong evidence that the federal administration’s actions are going to cause incredible harm and that the pain will grow going forward.”
Huang noted that federal money that supports the Cambridge Housing Authority and federal voucher programs that help fund services for the city’s homeless population as well as affordable housing projects could also be at risk. And he noted that making up for federal funding losses would not be easy.
“The reality is the scale of federal funding will be impossible for Cambridge or even really the commonwealth of Massachusetts to backfill,” he said.
Cambridge Vice Mayor Marc McGovern echoed that concern, noting that a “difficult and sobering” conversation needs to be had with residents. “Buckle up,” said McGovern. “It’s going to be a bumpy ride for a while.”
Chelsea City Manager Fidel Maltez voiced many of the same worries circulating in Cambridge and Revere, noting that in fiscal year 2024 his city received $14 million in federal funding. In a statement, Maltez said the impact of federal funding losses could be “severe.”
“This funding is for vital services like education, infrastructure, and law enforcement,” said Maltez. “With the possibility of these funds being cut or reduced, we may need to make difficult decisions.”
In Revere, Mayor Keefe said that in anticipation of budget shortfalls, the city could keep some open municipal jobs vacant, and may have to lay off some recently hired workers. Keefe said he has no problem with financial efficiency in government, but said the Trump administration’s actions have shown a lack of forethought.
“I think that this approach has been reckless to say the least. It seems like it’s a shoot first, ask questions later approach,” said Keefe. “And I don’t know if anyone has figured out the method to the madness here. And it’s created panic.”
