Update: Federal Funding Directives & Budget

PSRC is tracking federal funding directives and other actions and will continue to serve as a resource for our members to provide information and updates.  

Executive Board Update 
PSRC’s federal consultants shared the latest updates on the presidential transition, funding directives and the appropriations process at the PSRC Executive Board meeting held on February 27. Watch the recording here

Executive Orders
Since his swearing in, President Trump has issued many Executive Orders, several of which may have impacts for local governments, including: 

  • Ending Radical and Wasteful Government DEI Programs and Preferencing Executive Order:  Eliminates all diversity, equity and inclusion (DEI) programs throughout the federal government, and terminates all DEI mandates, preferences and activities.
  • Unleashing American Energy Executive Order:  Supports traditional energy production, revises regulations relating to energy production and the energy permitting process, and pauses the disbursement of funds made available under the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. This pause applies to funds supporting programs, projects or activities that may be considered part of the Green New Deal and does not impact funding for infrastructure, transportation and drinking water projects. 

For additional information on Executive Orders and other Presidential Actions, please see:  

Agency Policies
Agencies are implementing President Trump’s Executive Orders through their own policies and programs. For example: 

  • Department of Transportation Secretary Sean Duffy issued a memo, outlining the actions the Department of Transportation will take to implement Executive Orders. Projects that receive funding from the U.S. Department of Transportation now must align with new federal priorities, with a focus on economic and family-oriented criteria and moving away from climate and equity initiatives. Revising existing plans and proposals may be necessary. A summary of the memo can be found here.  
  • The Department of Justice also issued a memo, directing the Department to pause the distribution of federal funds to sanctuary jurisdictions that fail to comply with federal immigration laws, including the Protecting American People Against Invasion Executive Order issued by President Trump. The memo also indicates that the Department of Justice will pursue legal action against jurisdictions that facilitate violations of federal immigration laws or impede lawful federal immigration operations.  

Congressional Action
The No Bailout for Sanctuary Cities Act (H.R. 32) has been introduced in the House of Representatives has been referred to the House Judiciary Committee, where it awaits further consideration. The bill would: 

  • Prohibit sanctuary jurisdictions from receiving any federal funds intended for use for the benefit of undocumented immigrants.  
  • Defines sanctuary jurisdictions as subdivisions of a state that prohibit or restrict their government entities from sharing information with federal, state or local law enforcement regarding the citizenship or immigration status of any individual or complying with voluntary immigration detainers issued by the Department of Homeland Security. 

Congressionally Directed Spending & Community Project Funding
We understand that there are many outstanding questions regarding the Congressionally Directed Spending and Community Project Funding processes for fiscal year 2026. Senator Murray and Senator Cantwell may begin taking requests very soon. PSRC is monitoring these funding opportunities and will provide updates as more information becomes available.

Listen: Recent Federal Update Call 
On February 6, 2025, PSRC partnered with the Association of Washington Cities (AWC) to host a call to provide information about Trump administration’s actions and the potential impacts on federal funding and local governments. A recording of the call can be found here. Additional calls will be convened in the future when there are new developments to share.