Confusion over Future Federal Funding, While Washoe County and City of Reno Already in Budget Holes
Confusion still reigns among local non profits and government entities over possible future federal funding cuts, with different statements being released, from the county to the White House, even as both Washoe County and Reno face huge budget holes, with projects already on the cutting block.
With Washoe County already stating it was facing a $27 million budget deficit, it now released a statement on how it might be impacted by a possible federal funding freeze, even as a memo from the Office of Management and Budget was released on the same day saying the controversial order was being rescinded.
What money they won’t be receiving anymore doesn’t seem as dire after some backtracking by the fast moving Trump administration.
“OMB Memorandum M-25-13 is rescinded. If you have questions about implementing the President’s Executive Orders, please contact your agency General Counsel,” a memo released by the White House Office of Management and Budget indicates.
"Facing legal pressure from our clients and in the wake of a federal judge ruling in our case last evening, the Trump-Vance administration has abandoned OMB's ordered federal funding freeze," Democracy Forward, which led a legal challenge over the effort, said in its own statement today. "We are proud of our courageous clients -- who represent communities across the nation -- for going to court to stop the administration's unlawful actions."
The pause in funding was originally set to take effect last night, but on Tuesday afternoon the White House had already issued a fact sheet that said the pause didn’t apply across the board.
Meanwhile, the City of Reno has estimated its own budget shortfall next year at $25 million because of slow revenue growth and increasing personnel costs.
Future expenses are already being cut, whatever happens in Washington.
A publicly released email from January 24th from Youth Recreation Manager Corina Lindsay indicated that “due to budget revenues (tax revenue) coming in at a flat rate, we have been asked to save money by cutting travel and reducing food purchases. So, we are not going to be able to go to National League of Cities this year.” This was a planned trip for the Reno Youth City Council.
