Wisconsin must wean itself from over-reliance on federal funding
Self reliance is a fundamental part of the Wisconsin way of life.
From agriculture to industry and into technological innovation, Wisconsinites are not afraid to get their hands dirty and put in the work and time needed to get the job done.
Faced with change and uncertainty at the federal level, Wisconsin must tap into that spirit of self-reliance and look to a future where the state stands on its own without the entanglements that come with federal funding. Wisconsin must look to the needs of the state’s senior citizens, veterans, children and the downtrodden to ensure stability in the face of potential cuts at the federal level.
Regardless if people believe it is the right or wrong thing to do, the Trump Administration is actively working to reduce the size and scope of the federal government.
According to the U.S Bureau of Labor Statistics, currently just over 3 million people are currently employed by the federal government. This number has increased steadily since mid-2014 when there were about 2.7 million federal employees. The last time the number of federal employees topped 3 million was during a decadelong stretch from the mid 1980s to the mid-1990s.
Change brings uncertainty and the more rapid the change occurs, the greater that level of uncertainty. The first thing people do when they feel financial uncertainty is to change their spending habits by cutting back and canceling or delaying purchases of things that are not absolute necessities. People won’t buy new homes, cars, boats or UTVs if they are worried about their ability to buy groceries or make their mortgage payments six months from now.
Lack of consumer confidence has a cascading negative effect throughout the economy causing lasting economic harm that can take years to recover from.
There are those who maintain a Pollyanna-esque optimism about the outcomes of the laundry list of executive actions and the disruptions caused by DOGE witch hunts. While optimism about long term goals is admirable, in the real world actual outcomes are what matters.
When you see storm clouds rolling in, it is prudent to take steps to protect what is dear to you. Wisconsin must pivot its politics to ensure that vital federally funded benefit programs for seniors, the disabled and veterans as well as special education and remediation programs can continue despite what happens in Washington DC. Self reliance is at the heart of the Wisconsin ethic and, with drastic changes at the federal level, it is even more necessary for the state to wean itself from federal purses and the strings that come attached to them.
In recent years, Wisconsin has received about $17 billion in federal funds. This number grew dramatically as the result of federal COVID-era programs and the bipartisan federal infrastructure funding measures passed under president Biden. Historically, the amount had been closer to about $10 billion a year from the federal government. On the other side of the ledger Wisconsinites send about $14 billion a year to federal coffers.
Wisconsin leaders must prepare and prioritize for a shift toward more self reliance at the state and local level while actively working to wean the state from federal funds and free the state from strings that come with those funds.
