As the Trump administration takes an ax to federal government spending, Nashville’s mayor is ringing alarm bells.
“I honestly don’t know how we’re going to grapple with it if we see very large amounts of federal funding go suddenly missing across a whole set of domains of policy in Nashville,” Mayor Freddie O’Connell told reporters Friday. “Finance and law continue to look at all of these things every day.”
The Trump administration has made an effort to pause trillions of dollars in federal spending while evaluating whether those programs aligned with the president’s policy goals. Two judges have blocked the freeze, but the granted injunction only applies to the 22 states, plus the District of Columbia, that sued. Tennessee did not sign onto the lawsuit.
O’Connell said that a number of city departments — like the Nashville Department of Transportation, Metropolitan Action Commission and Metro Public Health Department — could face millions in losses. More specifically, the Office of Homeless Services stands to lose up to $9 million if funding from the Department of Housing and Urban Development goes away. And around $100 million is at stake for Metro Nashville Public Schools, particularly as Trump moves toward dismantling the Department of Education.
Outside of city departments, there are 396 local nonprofits that are looking at $1.5 billion in funding losses, according to estimates from the Center for Nonprofit Excellence in Middle Tennessee.
This uncertainty is leading O’Connell’s administration into a “risk-minded” approach, as the city heads toward an already tight budget season. Similar to last year, revenues are looking largely flat, and O’Connell said the federal funding scenario could have an impact on how Metro approaches adjusting the property tax rate.
In addition to funding, O’Connell aired alarms about other federal decisions — like the possible shutdown of Nashville’s Social Security Administration office. The Department of Government Efficiency listed the leased office as one targeted for potential closures. However, the office remains on the federal website, and O’Connell said it was unclear whether it would remain open.
“This was another week of trying to separate reality from fiction at the federal level,” O’Connell said. “It’s on a list. We don’t know if it’s going to close. There’s no date anticipated, but I think we’re seeing the same thing on a funding horizon standpoint. Some of it’s going to depend on what Congress does; some of it’s going to depend on what the White House does.”
