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City warns federal grant freeze could delay projects; staff lists multiple environment grants
Summary
City staff told the committee a White House memo temporarily paused federal grants until Feb. 10, potentially delaying projects such as the Assembly Street grade separation and several environmental grants the city has applied for or expects to receive.
Mary Pat, the city grants presenter, told the committee that an Office of Management and Budget action issued the morning of the meeting placed a temporary pause on federal grants and awards until Feb. 10 while agencies review incoming awards under the new administration.
She said the pause is temporary but unclear in scope and could affect multiple projects that rely on federal dollars, including the Assembly Street grade separation and several environmental grants discussed in her presentation. "It's a temporary pause and up until February 10th for them, the agencies to study the grants and the awards," she said.
Mary Pat summarized grants the city is administering or has applied for: a $105,000 CDBG (Community Development Block Grant) from HUD to install nine decorative streetlights in Addison Court (reimbursable; close date June 30, 2025); an Urban Community Forestry Inflation Reduction Act subaward administered through the Arbor Day Foundation and USDA to provide trees to residents in Justice40-designated areas (grant period through June 30, 2029); a $198,000 Energy Efficiency and Conservation Block Grant (EECBG) from the Department of Energy to retrofit city street lights to LED (project reimbursable; grant period ends March 28, 2027); and the Climate Pollution Reduction Grants (CPRG) from EPA — $1,000,000 for planning and $8,700,000 for implementation across the metropolitan statistical area, including a proposed multi-jurisdictional solar farm (planning ends June 30, 2027; implementation ends Oct. 31, 2029).
Mary Pat said some awarded funds have been obligated but not yet distributed and that staff is watching whether already‑distributed monies remain available; she said the city is not yet holding the funds in most cases and is awaiting receipt. Committee members asked whether awarded funds already sent to recipients would be frozen; Mary Pat said she was unsure and staff were seeking clarification.
She also noted smaller grants and programs such as the Bloomberg Youth Climate Action Grant ($100,000) and explained that some grants are reimbursable: the city must complete work and file for reimbursement to receive funds. The committee heard that many grants require meeting Justice40 coverage for tree-planting and that some programs include community events tied to planting and education.
No formal committee action was recorded on the grants during the meeting; staff said they will monitor developments through their federal lobbyist and return with updates.
