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State agency warns federal grant freezes could stall water, conservation projects
Summary
Agency of Natural Resources officials told the House Appropriations Committee that federally funded grants and loans make up roughly 40% of the agency's FY24 budget and that recent suspensions of reimbursement accounts are delaying partner work and could reduce loan-making capacity for drinking water and wastewater projects.
The House Appropriations Committee on April 23 heard from Agency of Natural Resources (ANR) Secretary Julie Moore and Chief Financial Officer Steve Gomez that suspensions and freezes of federal grant reimbursement accounts are disrupting projects and could reduce the agency's ability to support municipal loans and conservation work.
Moore told the committee that "our FY 24 budget as passed was $230,100,000," and that roughly 40% of that total is federal funding. She said the agency administers State Revolving Funds that together make up about half of ANR's federal dollars and that those loan programs provide the majority of pass-through funding to municipalities for drinking water and wastewater projects.
The committee was told why the issue matters: much of ANR's work is reimbursement-based and many subrecipients lack cash reserves to proceed if reimbursements stop. "We are unable to" draw down at least one account, Moore said when describing how grant portals show a…
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