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Sanctuary city funding cuts less of a concern than Medicaid: Fitch
President Donald Trump's executive order last week to cut federal funding to self-proclaimed sanctuary cities would likely not result in 
an impact to cities' bond ratings, Fitch Ratings reported on Monday.
Instead, a push to convert Medicaid to a block grant would likely result in a more significant effect on state and local government finances, Fitch noted.
Federal funding represents only a small portion of local revenues and most of the funding is restricted to specific programs, such as Temporary Assistance for Needy Families (TANF) and school lunch subsidies, Fitch reported. In general, federal funding does not support cities' general operations.
Sanctuary status is not an official designation. Still, cities across the country have vowed some sort of protection to undocumented residents, including New York, Los Angeles, San Francisco, Boston and Chicago.
Much of the federal funding spent at the municipal level flows to states, counties and school districts, rather than cities.
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