Providence Was In A Financial Crisis, Now $174M Is Under Threat From Trump
GoLocalProv News Team
Providence Was In A Financial Crisis, Now $174M Is Under Threat From Trump
Before Donald Trump was sworn into office, the City of Providence was already in a fiscal crisis.
The majority of the federal funding to Providence is for education. A big unknown is the implication of President Trump’s promise to eliminate the U.S. Department of Education and what will happen to those federal funds that have historically come to prop up the Providence Schools.
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Unaffordability: Increasing Taxes, Hot Housing Market, and Highest Increase in Rents
Providence Mayor Brett Smiley is poised to raise taxes for the second time in his three years in office, and this year’s increase may be so significant he has said he will need to go to the General Assembly to remove the cap that limits Rhode Island communities from raising taxes more than 4% in a year.
As GoLocal reported, Providence had the largest increase in the average rent from December 2023 to December 2024 of the country’s largest metros: 12.6 percent, with a median asking rent of $2,145, according to Rent.com's report.
Providence will be the 3rd hottest major housing market in 2025 in the United States, according to a new analysis by Zillow. Relative affordability and few homes for sale are common threads among what should be the most competitive markets for buyers this year.
Homeowners are also being hit with evaluations, which is seeing some property owners see increases as high as 40%.
The Budget Mess Getting Worse
The City of Providence’s budget is $599 million, and the school department's budget is $428 million.
Within those two numbers is more than $174 million in federal funding, and some portions of it are under threat of cutting by the Trump administration.
In response to a GoLocal request, the Smiley administration broke down the $174 million in federal funds. These totals do not include any COVID/APRA funds. Those have expired. And Smiley’s office said that these numbers have not been audited.
About 35% of the Providence Schools and 17% Overall
According to Smiley’s office, the full total is $177,983,931, but it may actually be closer to $174 million, according to Josh Estrella of Smiley's office, including federal funding for the Providence Schools.
The breakdown of the funds by department:
Providence Public Schools District: $151,924,593
Public Safety: $3,556,076
Workforce Solutions: $3,085,766
Healthy Communities: $1,579,487
Planning: $17,795,744
Sustainability: $42,265
Providence taxpayers are facing massive tax increases, and renters will see increasing rents due to the city of Providence's years of mismanagement.