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City staff: $41 million in federal grants at risk as administration shifts; council encouraged to monitor impacts

2757259 · March 18, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Deputy City Manager Tyler Marr told council that about $100 million in federal funding is currently active for the city and partners, with roughly $41 million flagged as at risk amid federal priority changes. Staff outlined possible revenue and service impacts and said they will monitor and report back.

Deputy City Manager Tyler Marr told the Fort Collins City Council on first reading that the city currently has just under $100 million in active federal funding and had identified about $41 million in grants as "at risk" because of changing federal priorities.

Marr said the city is tracking programs that lack final authorization or contracting and flagged programs tied to recent federal initiatives as particularly vulnerable. "Our goal with this presentation is really to talk about a couple of areas: 1, where we know there are direct impacts or potential impacts to the city organization; broader community impacts," Marr said.

Why it matters: the city and regional partners rely on federal formula and competitive grants for operations and capital projects. Marr noted Transportation Services receives about 25% of its operating budget from federal formula funds, and that continued uncertainty could affect operations and revenue, including sales tax. He also said continuing resolution action extended current funding levels through September but left longer-term outcomes unclear.

Details: Marr told council the city has identified 13 grants (later clarified in the packet to about 16 color‑flagged items) at risk, totaling about $41 million. He said partners — Colorado State University, Larimer County and human services providers — could face larger impacts because of their federal funding exposure. Marr said the city also counts more than 1,600 federal employees in the local economy and that changes to federal staffing, leases or contracting could affect local leasing, utilities accounts and spending.

On CDBG and HOME, Marr reported regional partners expect those programs to be stable through 2026 but said the city will continue to monitor. He also warned that tariffs and shifting supply chains could raise costs for the city's capital projects and for grocery prices.

Council response and next steps: Council members thanked staff for the briefing and asked that staff clarify which line items in the packet were the at‑risk grants (the staff answer: the salmon‑colored rows are the at‑risk items). Council asked staff to provide ongoing updates and to return with additional detail if federal decisions produce new impacts.

Marr said staff will continue scenario planning and coordinate with regional partners and the congressional delegation. "We're happy to answer any questions and appreciate the time," he said.