Amanda Wood is a senior director at Becker, where she advises local governments on federal funding strategy and grant compliance. As Congress debates 2027 appropriations, the real contours of federal funding for cities and counties are coming into focus. The biggest risk for communities isn’t a closed spigot. The real risk is stepping out of competition for federal dollars just as the rules of engagement become clearer. The Trump administration swept into office last year with a single-minded focus to reprioritize federal spending. And this they did. Between DOGE actions and the tax policy changes enacted in the One Big Beautiful Bill, the administration has worked to realign federal spending priorities. Stories of grants being cut, funding being stalled and entire programs and agencies being dismantled have dominated the news, but the reality of federal funding is more complicated than any single narrative can convey. While the executive branch may have control over certain funding decisions, it’s up to Congress to appropriate funds within the budget — something that happens through a bipartisan negotiation process on an annual basis. Across the federal government, especially in the agencies that house the grants many communities rely on, funding has shifted but remains largely intact. The federal government’s workhorse programs continue to enjoy broad, bipartisan support, especially the more formula-based programs such as Community Development Block Grants. These programs have direct benefits for constituents, and Congress doesn’t eliminate those opportunities lightly. The mistake local government leaders make amid this political back-and-forth is getting caught up in the headlines. Just because a grant or a project gets cut or reduced does not mean that federal dollars have disappeared. The money is out there, but assumptions about which projects the federal government will and will not fund can lead to missed opportunities exactly when communities