During a special meeting for the city of St. Louis’ Board of Estimate and Apportionment on Wednesday, city leaders discussed the impact President Donald Trump’s executive order to freeze billions in federal spending could have on the city’s finances.
Trump’s move to freeze spending has caused confusion and panic across the country, with some federal judges ruling against the move, ordering that the administration continue to provide some funding.
According to city leaders, the city receives at least $162 million in federal dollars, and over 150 city government projects would be impacted if the orders were allowed to stand.
“This has turned into a legal battle with the Trump administration fighting hard to keep that freeze,” St. Louis Mayor Tishaura Jones said during the virtual meeting Wednesday. “Federal funds support law enforcement, affordable housing, seniors, flood response and so many other things.
“The decisions made by Trump and his inner circle of billionaires and cronies will have a real effect on the residents of the city of St. Louis.”
Jones’ Policy Director Casey Millburg said retiree benefits could be cut by $4,000 after one year, and median wage retirees could lose up to $100,000 over 10 years if all the orders are upheld.
In addition, over 200,000 Medicaid enrollees in the city could lose their coverage, and 928,000 women could lose access to free preventative emergency contraception, Millburg said.
In addition, funding for holding non-compliant property owners accountable could be negatively impacted, and some safety improvements to the St. Louis City Justice Center could be halted.
Millburg said there are also anticipated federal grant awards that city agencies have not yet drawn down, and several departments provided updates on their status.
She said St. Louis Lambert International Airport has about $37.5 million in federal grants pending. The Community Development Agency is awaiting $69.1. The Department of Health is waiting on about $880,000. The Department of Public Safety has $432,000 pending, and the St. Louis Agency on Training and Employment is awaiting $200,000.
Millburg said it appears the safest money is funding for which the city has received a written agreement and has already come into city coffers.
The board discussed the need for proactive measures, including monitoring federal developments and engaging with federal and state authorities to mitigate the effects.
Millburg noted that President Trump distanced himself from Project 2025 during his campaign but said it is clear his administration has embraced the plan from the Heritage Foundation, which aims to remove checks on executive power.
“There's federal actions that are anticipated in the coming days, weeks and months that are likely to provide both clarity, as well as some potential negative impacts or other impacts that all local governments will have to be prepared to pivot to.”
Jones called on the community to be vigilant in navigating these challenges.
“Every day, we're encouraging you to call your senators and your representatives at the federal level and ask that they fight back against these reckless executive orders and Project 2025, which promises to dismantle federal funding that supports law enforcement, affordable housing, seniors, our unhoused flood response and so much more,” Jones said.
