Trump's budget would cost Iowa $100 million in federal funds

Linley Sanders | Associated Press

A fiscal analysis shows federal grant funding to Iowa would drop by more than $100 million under President Donald Trump's proposed budget, a move that would force the state to reduce services or find other funding for programs ranging from early education to job training.

The documents posted this month by the nonpartisan Legislative Services Agency offer the first details about what Trump's proposed federal budget could mean for Iowa. The LSA analysis doesn't cover all aspects of Trump's proposal, which seeks big reductions in many domestic programs, but it highlights what the plan would mean for some high-profile state services.

Several of Trump's proposed cuts would hit programs that Gov. Kim Reynolds has made priorities, including adult and youth job training and boosting technology in K-12 classrooms. Any federal spending reductions would come at a time the state has repeatedly dealt with funding problems, leading to two budget shortfalls in the past year and possibly a third later this month.

Brenna Smith, a spokeswoman for Reynolds, noted Trump's budget is only a proposal and expressed understanding at the need to reduce federal spending.

"We know as a country that something must be done to address the federal debt," Smith said. "This is a very initial draft budget that will go through many changes, and we look forward to working with our federal partners to ensure our priorities are met."

Congressional leaders have said many of Trump's proposals are nonstarters, but Joshua Huder, a political analyst at the Georgetown Government Affairs Institute, said they provide an indication of Trump's priorities.

"These are broad outlines of his ideas, and they will play some role in the budgeting process," Huder said. "But all of this is really just a point paper."

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Among Trump's plans are to eliminate a popular Department of Energy home weatherization program, which in the current federal fiscal year provided about $4.8 million for energy efficiency projects in low-income Iowa houses.

Bill Brand, the division administrator for the Community Action Agencies that oversee the projects, said the program has proven valuable and typically received bipartisan congressional support.

"These budget times are very uncertain. It cannot be assumed that funding is going to be continued," Brand said. "The federal budget is going to be tight, and there's a lot of competition for funds."

Trump has sought elimination of the Community Development Block Grant program, a move that would end funding that this year totaled about $11.5 million. The money funds city revitalization and water initiatives through the Iowa Department of Housing and Urban Development.

Tim Waddell, a community development division administrator for the Iowa Economic Development Authority, said the proposed end to the 43-year-old program could cause rates to increase for some small cities that would lose federal help for system upgrades.

"Small cities particularly depend on it," Waddell said. "When you lose a revenue source that means the burden goes back to the individuals that are supporting the system."

A roughly $2.4 million grant to integrate classroom technology to promote well-rounded K-12 education is proposed for elimination, as well as a grant for Iowa teacher training. Last year, the grant for teacher advancement provided Iowa schools $17 million to support educational strategies.

"We understand this is the beginning of a process, and we will be monitoring what happens from here," said Staci Hupp, an Iowa Department of Education spokeswoman.

Within the Iowa Department of Human Services, Trump has proposed eliminating a Social Services Block Grant, which funded case management and child welfare services in the current budget year, according to DHS budget documents. The services focus on the safety of children in foster care and adoption.

The proposed elimination comes amid criticism that child welfare case workers in Iowa are overloaded and working without enough resources. DHS announced last week it will allow an outside nonprofit to review the department's resources and recent cases.

Amy McCoy, a spokeswoman for DHS, said the agency is monitoring the proposed federal spending cuts.

Huder said it would take time before states had more clarity about federal spending, as Congress began writing and approving budgets.

"Congress has the power of the purse," Huder said. "They're the ones that actually decide whether they want to follow the president's request."