Part 8/11:
In turn, this decline hampers the city’s ability to generate revenue, potentially leading to budget cuts, layoffs in public services, or increased reliance on state and federal support—support that itself may be at risk.
National and Federal Fallout
Portland’s political stance on social policies, such as its stance as a sanctuary city and its Diversity, Equity, and Inclusion (DEI) initiatives, also threatens its financial well-being. The city is facing the potential loss of nearly $400 million in federal grants, primarily tied to housing, transportation, and infrastructure projects. The conflicting policies—particularly restrictions on race-based equity language and sanctuary measures—may force the federal government to reconsider or withhold funding.