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Peoria officials warn $32.9 million in federal funds at risk after temporary federal spending freeze
Summary
City staff told the City Council that roughly $32.9 million in direct and pass-through federal grants are exposed to a federal pause on reimbursements; staff said some drawdowns are already underway and urged documenting impacts.
City officials told the Peoria City Council on Tuesday that roughly $32.9 million in federal grant funds the city has received or is scheduled to receive could be at risk if a federal spending freeze requested by the Trump administration remains in effect.
The exposure includes a little more than $15.1 million in direct federal awards the city has received and about $17.8 million in federal pass-through dollars the state then awards to the city, Director Craddy, finance director for the city of Peoria, told the council. "In totality, we're looking at about $32,900,000 in funds that are at risk," Director Craddy said.
Why it matters: Council members were told that a sudden pause would force the city to temporarily use general-fund reserves to cover expenses that had been planned for reimbursement, accelerating the drawdown of the city's fund balance and potentially affecting ongoing projects and personnel funded by grants.
City Manager (name not specified) summarized the federal action and the immediate status: "There was a judge that came in and basically put a hold on that until February 3," he said, referring to a court stay that…
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