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Spokane officials flag federal grant terminations and proposed cuts that could raise local borrowing costs and stall infrastructure projects

3255692 · May 9, 2025
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Summary

Federal and federal‑policy risks — including paused grants, potential reductions in state revolving funds and proposals to curtail tax‑exempt municipal bonds — were discussed with the city's federal lobbyists; board members were urged to track appropriations and support federal advocacy.

The Climate Resilience and Sustainability Board heard from the city’s federal lobbyists and staff about growing federal‑level risks to Spokane’s funding pipeline, including recent pauses and terminations of federal grants, proposed reductions in federal support for water and wastewater state revolving funds, and a threatened change to the tax status of municipal bonds that could sharply increase borrowing costs.

Brian Christiansen of Desimone Consulting Group, the city’s federal lobbyist, briefed the board on the ongoing congressional budget and reconciliation processes and warned that a range of federal proposals could affect Spokane. "There's a lot of threats out there," Christiansen said, urging vigilance and coalition building with other cities and…

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