Oregon lawmakers warn of federal funding cuts' impact on state budget

Oregon officials are facing uncertainty about federal funding, which could impact the state's budget planning through 2027, especially concerning essential services like Medicaid and education. The state relies heavily on federal funds, with approximately 32% of its $38 billion budget sourced from federal allocations, and proposed cuts could drastically affect critical programs. Recent federal budget reductions have already impacted local organizations such as the Court Appointed Special Advocates (CASA), which lost $1.7 million in federal funding intended to support foster youth advocacy. Lawmakers have expressed concerns that cuts could hinder the state's ability to respond to various needs, including healthcare and educational services. The co-chairs of the Oregon Ways and Means Committee highlighted the potential for a 30% reduction in federal funding, which could complicate the proposed budget framework for the 2025-27 biennium. As state leaders prepare for these challenges, they remain in a precarious position with significant reliance on federal support and no concrete assurances about future funding levels.