This has a lot of unintended consequences beyond money.
It forces departments to prioritize tasks and weeds out poor managers. There will be accountability.
Will money still be spent on seminars not to hurt gay gender feelings? Which bath room perverts should use?
They will try what they always try when funding starts to dry up, they'll do everything to maximize public pain and inconvenience, then gloat when there's an outcry, "see, that's what you get for cutting." The IRS has already done it before.