Council flags $13.6 million in federal project funds as temporarily at risk amid federal treasury hold; board authorizes executive director to manage exposure

Executive Director Duane DeFries briefed the council on Feb. 14 about a short‑term, but significant, funding risk to multiple federal grants that support projects in the Indian River Lagoon.

What DeFries told the council: he described three federal lines of support the program relies on: the EPA section 320 appropriation for the National Estuary Program (about $850,000 in the current year), a one‑time Infrastructure Investment and Jobs Act (IIJA) supplemental award (about $909,800), and a competitive NOAA transformational habitat grant awarded to the council and its partners totaling about $9,400,000 over three years. DeFries said the council’s treasury draws—reimbursements submitted to Treasury via the ASAP system—were temporarily blocked after a White House executive order paused some agency disbursements. A subsequent court stay and then a rescission of the executive order restored some access, but DeFries reported the NOAA award remained inaccessible through the Treasury portal as of the council meeting.

Aggregate exposure: staff rolled up current and upcoming reimbursable obligations associated with subawards and projects and presented an aggregate exposure figure in the range of roughly $13.6 million across the three federal lines if draws remain unavailable.

Risk management options and staff recommendation: DeFries said staff had authority to place stop‑work orders on federally funded contracts but had not done so because some work windows (for example, seagrass planting) are seasonally limited and a stop order could cause greater harm. He recommended continuing to operate carefully—advancing negotiations and scopes but delaying contract execution until funding status is clearer—and directed staff to monitor cash flow and avoid large, irreversible expenditures without consultation. DeFries also said he planned to brief congressional offices in Washington and to request clarity from the funding agencies.

Board action: Council chair Jeff Brower asked for a motion to adopt the staff recommendations described in agenda item 11(b). Commissioner Brower moved to approve the recommended actions; the motion was seconded and passed unanimously. The minutes show the board authorized DeFries to use his existing authority to place stop orders if staff determine the council would be financially exposed by continuing work while funds remain inaccessible. The motion record indicates unanimous support and directed staff to continue negotiating scopes of work but not to execute contracts until federal funding clarity was obtained.

Why it matters: the funding involved supports dozens of subawards and projects across the lagoon and funds work on seagrass nurseries, habitat restoration and monitoring. An extended inability to draw funds could force stop‑work decisions, delay seasonal restoration activities and put the council in the position of needing to bridge reimbursements to subawardees.

Selected quote: "I wanted to put this on the agenda mainly because of the potential large risk exposure we have to our federal funding," DeFries said. "We have 19 projects under section 320, 23 tied to the IIJA line and 10 NOAA subawards; combined it's a substantial exposure."

Next steps: staff will continue to monitor the Treasury/ASAP portal, brief congressional delegations on project status and coordinate closely with subawardees. The council asked staff to keep the board informed and to use the authority to pause work if continuing would put the council at material financial risk.