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City staff: federal-grant pipeline largely steady; two grants lost
Summary
Budget staff told the City Council work session the city's core federal grants portfolio is holding steady despite federal funding uncertainty; presenters said two grants previously awarded to the city were later lost and staff are tracking potential programmatic changes.
At a City Council work session, Ryan Bergman of the city budget team said the city’s portfolio of federal grants is “largely steady” but that staff continue to watch risks and evolving federal priorities.
Bergman told council members the bulk of Raleigh’s federal grant revenue flows from three federal sources: the U.S. Department of Transportation, the U.S. Department of Housing and Urban Development and Department of Justice programs supporting public safety equipment and services. He said staff expect near-term level funding for most formula and program grants but continue to monitor sudden federal changes.
Why it matters: Federal formula grants fund transit, housing and public safety programs that the city relies on for capital projects and operating services. A broad shift in federal priorities or a sudden withdrawal of grant awards could force service cuts or require local funds to replace lost revenues.
What staff reported: Bergman said the city has not seen widespread losses; he cited two awards the city has lost in recent months — a charging-infrastructure award and a U.S. Forest Service award — and said the latter was about $1 million. He said “once you strip out ARPA” the city’s grants portfolio concentrates in the three agencies named above and that the city’s budget office is coordinating departments to monitor risk and adjust if more grants are affected.
Council questions and follow-up: Councilors asked whether the loss of a tree-equity or other grants will stop planned work; staff responded that some programs will continue with local funds and that department colleagues are preparing status updates. Bergman said staff will report back if there are more significant changes.
What staff will do next: The budget office will continue coordinating departments, track federal announcements, and provide updates to council when changes affect projects or operating plans. Councilors also asked staff to consult Wake County for its analysis of federal-grant impacts because county social-service grants differ in type and scale and can affect local service delivery.
Ending: Bergman emphasized that the two recent grant losses represent a small share of Raleigh’s grants portfolio to date but said the city will keep the council informed and flagged the need to remain flexible if federal spending rules or program priorities change.
