County presents federal-grants exposure review; staff recommend monitoring reimbursements and reallocating ARPA reserve to reduce risk

Clallam County administration presented an internal review of the county’s federal grants, reimbursements and department-level burn rates after national reports that some federal grant disbursements might be paused pending federal-level review. The county’s analysis identified approximately $24 million of federal grants in the current budget (about 17.5% of the county’s total budget), concentrated in public works — notably roads and the broadband project identified as the Joyce/Mt. Joyce broadband build.

Staff reported that, when the review began in February, roughly 64% of outstanding grant reimbursements had already been received; that percentage has increased since the analysis. Reimbursements to the general fund were noted to be in excess of 80% of those due when the review began. Administration described ongoing coordination with department grant managers and urged departments to submit reimbursements promptly as they incur costs.

Staff also reported quarterly expenditure "burn rates" for federal grant–funded work. The countywide average was about $500,000 per quarter, with a projected Q3 spike to about $1.625 million driven by seasonally scheduled public‑works projects (fish-barrier work such as McDonald Creek and others). Administration emphasized the need to track timing so the county can pause or slow projects quickly if federal disbursements were to be curtailed.

To reduce financial exposure, staff recommended documenting use of available ARPA Section 6005 local assistance funds (approximately $2.5 million in county reserves) for general-fund‑level expenses already incurred, thereby reducing the risk those funds might be clawed back. Staff said the county will return with a draft resolution designating those funds for identified first-quarter costs and will continue to monitor federal guidance and communicate any reimbursement delays to congressional representatives if patterns emerge.

Commissioners asked about which pass-through and direct federal programs were included (county staff said they reviewed both direct federal grants and state pass-through grants), expected reimbursement timelines (Commerce typically fast; Department of Ecology two to three weeks; FEMA often much slower), and which grants posed the most seasonal exposure. Staff said FEMA reimbursements remain the slowest historically and that the county should expect to maintain close communication with state and federal grantors while tracking department burn rates.