Westminster lobbyists brief council on federal and state developments, funding risks for water and social programs

Federal and state lobbyists told the Westminster City Council on July 21 that recent federal legislation and budget moves could reduce funding for programs the city uses for water, transit and social services and that the 2025 Colorado legislative session contained many bills with implications for local control.

Erin Ferriter, Westminster’s policy and budget manager, introduced a combined presentation from federal lobbyists Mike Deno and Mara Sheldon of Squire Patton Boggs and state lobbyist Amy Atwood of Atwood Public Affairs. The briefing summarized federal appropriations developments, potential cuts to state revolving funds that support water projects, and the state session’s outcomes and priorities.

Why it matters: The memo highlighted areas where grant funding that supports local infrastructure could shrink and where state policy changes could affect Westminster’s authority over local matters. Staff and councilors discussed next steps for protecting project funding and monitoring implementation.

At the federal level, Deno said a major package signed July 4 preserved the tax-exempt status for municipal bonds but included deep cuts and policy changes elsewhere. “The vote was 51 to 50 with the vice president breaking the tie,” he said while summarizing how the measure moved quickly through Congress. He and Sheldon flagged three immediate concerns for Westminster: proposed cuts to clean water and drinking water state revolving funds, potential changes to Medicaid funding mechanisms that could ripple to Colorado, and the possibility of additional rescission packages and appropriations fights ahead of the Sept. 30 fiscal deadline.

Deno noted one local federal project is still under consideration in the Senate’s Interior and Environment Committee: a $4 million request to support the city’s water tank relining project. He warned that House proposals had cut roughly $400 million from clean water state revolving funds and about $200 million from drinking water programs, and that if those reductions hold through conference, “states will see less money, and certainly less money will come down to local communities.”

On state policy, Atwood summarized the 2025 session, saying Westminster staff reviewed hundreds of bills and the city took positions on 17. “Almost 30% of the bills this session had some type of local control impact,” she said. Atwood described wins and defeats: the city helped secure amendments preserving municipal authority on food truck operations, worked on construction-defect reform intended to support condo development, and helped defeat legislation the transcript labels “Housing Developments on Faith and Educational Land.” She also described municipal-court legislation battles, including a transparency bill that was vetoed and other proposals that were defeated or amended after engagement with local judges and associations.

Councilors asked about near-term risks and what the city could do. Councilor Rosati pressed for specifics on grants at risk; Deno pointed to a previously canceled local grant for landscaping conversion and reiterated concern about reduced state revolving funds. He said transportation grant streams remain active and that the city could pursue opportunities tied to the reauthorization of federal surface transportation programs next year.

Councilors also asked about state-level prioritization. Atwood said the governor’s office and budget leadership plan agency briefings at the end of July to assess immediate consequences of federal changes and prioritize agency budgets. She noted the June revenue forecast showed continued pressure on the state budget from fixed costs such as Medicaid and that a possible special session could be called if certain impacts require earlier action.

What council directed: Staff and lobbyists agreed to continue monitoring appropriations and to work with state partners to prioritize Westminster projects for limited funds. Ferriter said staff would follow up on how federal and state changes affect specific city grants and would report back to council.

Context: The briefing covered a wide set of issues—from federal tax and benefit changes to specific Colorado bills—and emphasized that many effects will depend on pending appropriations and agency rulemaking. Lobbyists recommended continued coordination with state and congressional offices as federal and state budgets move toward final votes this fall.