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City attorney, finance director brief committee on federal grant litigation and budget changes; no city grants frozen
Summary
City attorneys and finance staff updated the committee on national litigation over paused federal grants, legal arguments in pending cases, and potential impacts of the 2025 House budget and Senate negotiations; staff said no City of Madison grants are currently frozen and FEMA reimbursements are continuing.
City of Madison legal and finance staff briefed the Finance Committee on May 27, 2025, about active federal litigation over executive actions pausing or terminating federal grants, related procedural arguments, and how a large federal budget package under consideration could affect federal grants and local budgets.
Laura Manella from the City Attorney’s Office summarized three categories of litigation she is tracking: (1) lawsuits directly challenging the executive branch’s suspension or termination of existing federal grants (several plaintiffs, including states and nonprofits, have obtained temporary restraining orders or preliminary injunctions in lower courts), (2) lawsuits challenging compelled changes to terms and conditions on existing grants (for example, King County’s suit over forced…
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