The Fiscal Affairs and Sustainability subcommittee of the Local Government Working Group is hosting a panel on October 21, 2025, at 1 pm ET. The panel will feature Clarence Anthony (NLC), Chris Morrill (GFOA), and Beth Kellar (ICMA) and the discussion will be moderated by Mark Funkhouser. The focus on the panel will be on what local governments consider their most pressing concerns and how can we learn from previous events such as the pandemic, the Great Recession, and New Federalism. More details about the event can be found below.
This panel will examine the unprecedented and massive disruption in the intergovernmental framework and local governments’ fiscal situation ushered in by the Trump administration and Congress. Several major events have influenced the intergovernmental system in the past half century, including the pandemic and the Great Recession. The current disruption is of a philosophical nature—unlike an economic or unpredicted health calamity--as was the transformative impact of the Reagan Revolution on the intergovernmental system that promulgated an era of federal devolution, decentralization, and deregulation. The panel will draw lessons from the early 1980s, such as the loss of general revenue sharing, to understand and contextualize the current intergovernmental environment. Hosted by the National Academy of Public Administration and featuring leaders from the International City/County Management Association (ICMA), National League of Cities (NLC), and the Government Finance Officers Association (GFOA), the session will explore how the policy shifts of the early 1980s reshaped the intergovernmental landscape and redefined the role of local governments in American federalism. Further, the panelists will present their assessment of local governments’ options and policies to cope with the changing intergovernmental landscape during the current fiscal year and the next several years.
The Reagan administration’s push for smaller government, reduced federal spending, and a reassertion of state and local responsibility marked a pivotal shift in national policy, which mirrors contemporary federal policy and programs during the second Trump administration. Among the most significant changes was the elimination of general revenue sharing, which had provided local governments with flexible, formula-based funding to meet community needs. Panelists will discuss how this loss and other changes at the federal level (e.g., block grants, federal mandates, waivers) affected local budgets, service delivery, and planning capacity, and how local leaders responded through innovation, adaptation, and advocacy.
In addition to providing historical context, the panel will consider the lasting legacy of this era, as well as the other major shocks to the intergovernmental system due to the Great Recession and the pandemic—including increased reliance on local revenue sources, shifts in public expectations, and a recalibration of federal-local relationships. The discussion will highlight how lessons from the 1980s might inform local fiscal policy and governance strategies today, especially in light of renewed debates over federal aid, local autonomy, and equitable service delivery. This session offers critical insights for policymakers, practitioners, and scholars navigating today’s evolving intergovernmental dynamics.