CINCINNATI -- The city of Cincinnati has warned local nonprofits to tighten up their spending, the first tangible effect of the uncertainty surrounding President Donald Trump's budget plans.
City staff made phone calls to the nonprofits Friday; the city's Department of Community and Economic Development also sent a follow-up letter.
In some cases, the city might suspend payments to the nonprofits altogether.
The warning comes as federal lawmakers consider sweeping reductions to the U.S. Department of Housing and Urban Development. The president wants to pull federal dollars from domestic programs and move them to Homeland Security and the Department of Defense.
But, it's not clear if lawmakers will go along.
In Cincinnati, HUD grants pay for a home repair program helping elderly and low-income residents, initiatives to reduce homelessness, along with many other efforts. The city manages how HUD dollars are spent locally.
If Congress passes anything close to Trump's plan, City Manager Harry Black warned the cuts could be "extreme" and "drastic."
HUD typically gives some indication early in the year of how much money it expects to give out for each program. The city spends its own money to cover costs until the federal government sends funds. That money reimburses the city for what it's fronted up to that point.
HUD has, in the past, announced funding in mid-February. But not this year. As of late March, HUD hasn't indicated how much each program might get.