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Carlsbad officials warned federal funding could be at risk if Congress allows shutdown
Summary
City staff and contract lobbyists told the Carlsbad Legislative Subcommittee that federal funding for local projects could be jeopardized if Congress fails to act by Sept. 30; city lobbyists will provide a memo outlining likely impacts and next steps.
Ally Pena, a Green and Gold fellow in Rep. Mike Levin’s office, told the Carlsbad Legislative Subcommittee on Sept. 9 that federal funding is scheduled to expire on Sept. 30 and — without congressional action — a government shutdown could halt work on projects across the district.
The warning came as the House had returned from recess and negotiators in Washington had yet to pass the 12 appropriations bills for fiscal 2026. “Federal funding is set to expire on September 30, and without congressional action, there will be a government shutdown,” Pena said. She said Rep. Levin has highlighted roughly $16,600,000 in district projects that could be jeopardized if funding lapses, including the Carlsbad Village railroad double track and trenching and the Buena Vista Lagoon Enhancement Project.
Why it matters: city staff and contract lobbyists said a shutdown would limit federal employees’ ability to process approvals or respond to inquiries, which could delay permits, funding disbursements and other time-sensitive federal interactions. Laura Morgan Kessler of Carpe & Clay government relations, the city’s federal lobbyist team, told the committee that, in past shutdowns, federal agency staff were not permitted to respond to emails or take phone calls, effectively pausing ongoing federal approvals.
City staff and the lobbyists said they would provide a written memo for city departments describing probable impacts and recommended contingencies. “We are working on an updated memo that we'll share with city staff that they can share with you to talk a little bit more about the potential impacts of a shutdown if that is indeed where we find ourselves,” Morgan Kessler said. The subcommittee asked that the memo identify specific federal engagements likely to be affected.
Subcommittee members reiterated that the city should rely on its contract lobbyists and internal staff resources to track and, where possible, protect active projects. Council member Burkholder noted the trenching funding for the village railroad as an example of a local project that could be delayed and asked staff to assure continuity of coverage.
The committee did not take any formal action at the meeting. Staff said the memo will be distributed to council and departmental staff and that the city would use internal resources to follow up on specific federal approvals that could be affected if a shutdown occurs.
Provenance: The committee’s federal update began with a report from Ally (Ally) Pena of Rep. Levin’s office and continued with a detailed briefing from Carpe & Clay lobbyists Laura Morgan Kessler and David Wetmore; the lobbyists described the continuing resolution process and explained operational impacts of a shutdown to city interactions with federal agencies. The city’s memo was described as forthcoming.
