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Decatur officials warn state preservation funding frozen; commission drafts letter to senators
Summary
Staff told the commission that congressional appropriations for the Historic Preservation Fund have been frozen and the FY2026 reconciliation proposal would eliminate much of the fund; staff asked the commission to sign a letter to federal senators and encouraged local groups to add their support.
Historic preservation staff briefed the commission on two funding problems affecting state and local preservation programs: (1) congressional appropriations that were passed for fiscal year 2025 have not been released by the federal government, leaving state preservation offices unable to access funds, and (2) the House reconciliation budget proposal for fiscal year 2026 would effectively zero out the Historic Preservation Fund except for limited allocations to certain recipients.
Staff said the fund — financed by offshore oil and gas lease revenues and administered through the National Park Service to state historic preservation offices — supports many functions including grant programs, Certified Local Government (CLG) staffing, historic tax‑credit review, Section 106 reviews, and competitive grants such as HERS and underrepresented community grants. Caroline told commissioners some states are already laying off preservation staff because salary lines are funded from the withheld appropriations.
Why it matters: staff said the freeze and proposed elimination threaten grants that Decatur and other communities rely on for rehabilitation projects, interpretive programs, and consultant support. Staff listed projects in Decatur that have relied on or sought funding from those programs, including Old State Bank rehabilitation work and recent grant applications on behalf of historic churches and community surveys.
Key points:
- Withheld FY2025 funds: Congress appropriated funds in March, but staff said the money has not been released to states; that delay has left state historic preservation offices unable to distribute grants or pay partially funded staff.
- FY2026 risk: staff said the House reconciliation bill would largely eliminate the Historic Preservation Fund for 2026, except for a narrow set of recipients; staff warned this would decimate grant programs and undermine the CLG partnership.
- Local impact examples: Caroline said Decatur had applied for HERS funds and other grants (Old State Bank HERS application was not funded); staff also assisted a congregation with a civil rights grant application that was not funded this cycle and plans to resubmit next year.
- Requested action: staff proposed a draft letter from the commission to U.S. senators explaining the local impact and asking for support to release FY2025 funds and to preserve FY2026 appropriations. Staff asked commissioners to review and sign the letter and encouraged commissioners to seek endorsements from local historical and genealogical societies.
Next steps: staff will circulate the draft letter, collect signatures from the commission, and send it to senators. Staff indicated they would attach a list of local projects and grants that depend on the funding.
Ending: Commissioners supported outreach; staff said they would add names and send copies to congressional offices if the budget returns to the House for further action.
