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Wilmington officials say federal grant freeze has not stopped current awards but threatens future appropriations
Summary
City officials told the Finance and Economic Development Committee that most federal reimbursements are continuing, but warned of risks to future appropriations, slowed agency processing, and a paused $17 million RAISE grant for Riverfront East.
Wilmington — City staff told the Finance and Economic Development Committee on Monday that, while most federal grants and reimbursements are still flowing now, the city faces an uncertain future if federal agencies reduce staffing, rescind unspent awards, or if Congress changes appropriations.
The most immediate takeaway, Deputy Chief of Staff Stephanie Merkler said, is: "So far the funds have been flowing." She warned, however, that the situation is "completely unprecedented" and said the city is preparing for multiple contingencies.
Why it matters: The city relies on federal grant dollars across housing, water and sewer capital projects, food programs, emergency management and other services. If appropriations, reimbursements or agency operations change, the city could face revenue timing problems, program cuts, or the need to shift costs into the general fund.
Key details reported to the committee
- Real Estate and Housing: Department staff…
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