It is not even close to being a done deal, but there are indications that this is a direction that might be coming as the Trump administration looks to reduce grant funding going to states and local jurisdictions.
One really big impact I see if this actually does happen is the death of regional projects. No one agency or jurisdiction is going to kick in a 25 percent cash match for a regional project. I've seen this impact already with Maritime Security Grants that eliminated the ability to request a waiver for the 25 percent cash match for regional projects. Since that was implemented — none have been instituted here in my area of the world.
I think the baseline will be trying to retain staff that were hired when things were good and now trailing off.