The governor or the designated state agency shall take any action that the governor or the agency considers necessary or appropriate to meet the needs of a local government if:
(1) any federal financial assistance is withheld from the local government;
(2) a contract that a local government would otherwise receive under a federal financial assistance program is withheld from the local government; or
(3) a payment is deferred because of an action by a federal government agency relating to the program.