Eugene: Federal grant freezes put about $30 million of projects at risk; city shifts $8 million in airport work to local funds

City Manager Sarah told the Eugene City Council at a June 11 work session that federal funding pauses and new grant-language requirements have put roughly $30 million in city projects at immediate risk, and that the city will use about $8 million in airport revenues to keep two airport projects moving.

The update explained which projects are immediately affected, why some grants are paused, and how the city and partner jurisdictions — including Lane County, Lane Community College and the University of Oregon — are experiencing related freezes and staffing or program risks. Councilors asked for ongoing updates and clarification on community impacts.

Sarah said four airport projects slated for construction this summer were tied to federal grants and are currently on hold. "We had 4 projects this summer that were slated for construction, all really important projects, probably about $14,000,000 worth," she said. Two airport projects the city characterized as urgent — the Concourse A asphalt apron and a drainage project for the airport's Runway 34 — will proceed using airport-generated revenues rather than federal funds. Sarah estimated the shift to local airport revenues would be roughly $8,000,000.

She said the Concourse A expansion is on hold "indefinitely related to requirements in the grant agreements that we can't comply with." The city is reviewing every affected contract with department budget managers, the intergovernmental relations manager and the city attorney to determine whether language can be clarified or compliance achieved.

On the broader impact, Sarah said the city is "at about a $30,000,000 pause right now across all…