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City agencies flag possible federal grant cuts; managing director to prioritize positions
Summary
Multiple departments told the Council they are monitoring potential cuts or delays to federal grant programs and are preparing contingencies: the Managing Director is prioritizing funding to preserve key positions if federal monies are reduced.
Departments across the City told the Committee on Budget that uncertainty about federal grant funding is influencing hiring and contingency planning for FY‑26.
At the close of the Department of Budget and Fiscal Services briefing, Council members asked how the administration would handle a potential loss of federal grants. Director Kawano said the Managing Director's office is cataloguing federally funded grants and "is prioritizing, all of that grant information," with an initial emphasis on preserving positions that support grant programs.
The Department of Emergency Management (DEM) said most of its grant funding comes from FEMA and other recurring programs; DEM acting director Jennifer Walter said the department uses federal grants for personnel and mitigation‑plan projects and that a loss of EMPG or other FEMA nondisaster grants would be particularly disruptive to staffing. Prosecuting Attorney staff and Corporation Counsel officials likewise identified specific federal grants that fund positions: the prosecutor's Victim/Witness counselors rely heavily on VOCA (Victims of Crime Act) funding and the office estimated 11 positions are federally funded and therefore exposed if grants were reduced.
Councilmembers asked departments to plan for scenarios in which federal reimbursements are delayed or reduced. Kawano said the Managing Director intends to use $10,000,000 in a provisional federal contingency in the budget to protect key positions where possible; departments were instructed to submit lists of federally funded positions and priorities.
Departments further noted practical limits to rapid substitution of city funds for federal grants. DEM said it typically uses grant funds to underwrite travel and training and maintains contingency amounts; the Prosecuting Attorney's Office said state victim assistance programs supplement VOCA funds but warned that replacing federal money would be difficult without legislative action or general‑fund transfers.
No formal action was taken; Councilmembers asked for additional written detail and departmental contingency plans as the FY‑26 budget process continues.
