Oakland relies on millions from the federal government. What if Trump cuts it?
Lots of local services get grants from D.C. The president-elect has threatened to slash that funding in the past.CA is the wealthiest state in the country, go to the Governor that allows the destruction of education, especially leftist education1/2
by Natalie Orenstein and AshleyMcBride
Nov. 27, 2024, 2:00 p.m.
During his first presidency, Donald Trump signed an executive order threatening to strip sanctuary cities of federal funding. Oakland, which has been a safe haven for undocumented immigrants since 1986, stood to lose about $130 million annually.
The threat, like many from Trump, was not ultimately carried out. But during his first term, he repeatedly used similar warnings to make points and push back against states and cities. In 2019, he said he’d cut support for the entirety of California over wildfire management practices.
Most departments and public services in Oakland rely on a hodge-podge of local, state, and federal funds to operate. Often the federal money is a smaller bucket, but if the president-elect takes a similar punitive tack in his upcoming term, local services from housing to education stand to suffer. This time, he’s also proposed shrinking or dismantling entire federal departments, like the Department of Education.
We checked in with government officials and analysts to learn how much the city depends on federal money, and what they expect to experience over the next four years.
Housing programs could shrink under Trump
Oakland’s Housing and Community Development Department subsidizes affordable housing in the city using an alphabet soup of federal and state grants and local tax revenue and fees.
Emily Weinstein, the department’s director, said the city receives four main grants from the U.S. Department of Housing and Urban Development, better known as HUD. These awards total about $14.4 million annually, with the largest being the Community Development Block Grantat $7.5 million. The city and county also receive HUD grants for emergency homeless shelters and programs.
“Absence of these programs would impact all of Oakland, including the low-income residents who are direct beneficiaries,” said Weinstein.
Other federal housing programs don’t get funded through the city directly, but support people in Oakland, she noted. The Section 8 program, for example, provides housing vouchers for low-income residents across the country. Locally, the Oakland Housing Authority receives and distributes those vouchers to renters who can use them to cover a portion of their rent.
The federal Low Income Housing Tax Credit program is a common way of funding affordable housing development. Developers can receive tax credits for investing in low-income housing. About 40% of funding for new affordable construction projects in Oakland is through these tax credits, said Weinstein, and “without it, we can neither adequately address homelessness nor build housing that is affordable to working families.”
It’s unlikely that Trump will end the tax credit, which has support on both sides of the aisle, Weinstein said, but she said other developer-friendly tax policies of his in the previous term “undermined” the appeal of the tax credit. With the corporate tax rate already lowered, it’s not as beneficial for investors to fund affordable housing and receive the tax credit.
“If the program is undermined, it would likely reduce the amount of affordable housing being built in Oakland,” Weinstein said. The city is already behind on targets for low-income construction.
What happens in Oakland if the Department of Education is eliminated?
Trump is not the first president to propose dissolving the Department of Education. Established in 1980, conservatives have long criticized the department, claiming it represents federal meddling in education issues better left to the states. In recent years,Trump and his allies have blasted the Department of Education because of policies meant to protect transgender and LGBTQ students and promote racial equity.
https://oaklandside.org/2024/11/27/oakland-federal-funding-trump/