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State official warns Aurora committee of shifting federal funding, litigation risks to local grants
Summary
A state official told Aurora's Pfizer Committee on July 18 that pending federal litigation, proposed federal budget cuts and changing grant terms could affect local projects and recommended conservative local budgeting and close contract review.
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Alyssa Denberg, director of federal funding and strategic coordination in the Colorado Governor—s Office of Federal Funds and Strategic Initiatives, told Aurora—s Pfizer Committee on July 18 that litigation and proposed changes in federal policy are affecting federal grants and could have local consequences.
Denberg briefed committee members on active lawsuits, proposed federal budget changes she summarized from what she called the "big beautiful bill," and recent shifts in grant administration. "We are starting to see changes in terms and conditions," Denberg said, urging local staff to monitor contract negotiations for grants awarded before the federal administration change.
The presentation laid out several areas of immediate concern for local governments: litigation affecting Department of Transportation grants (including preliminary injunctions), an ongoing federal challenge over a Department of Education withholding of $70,000,000 in formula funding, and broad proposed cuts Denberg summarized as roughly $163,000,000,000 in reductions in the bill she discussed. She also said some freezes on FEMA and water-related programs are easing but cautioned that many notices of funding opportunity remain pending.
Why it matters: many Aurora projects rely on federal discretionary grants for transportation, water and public-safety equipment. Denberg warned that when grant awards are still in contract negotiation after an administration change, new or changed terms can be imposed. "If you were awarded a grant prior to the new administration and you hadn't made it through contracting yet, we are seeing some changes in terms and conditions," she said.
Committee members pressed for specifics. Mayor Kaufman asked about federal research grants tied to the CU Anschutz Medical Campus and about affordable-housing tax credits; Denberg said she would follow up because her office is tracking NIH and housing questions but she did not have definitive answers at the meeting. Council Member Hancock asked that transportation committee staff be informed of which DOT injunctions could affect local projects; Denberg offered to research project-specific impacts.
Denberg also described some confirmed and anticipated federal funding opportunities. She said the U.S. Department of Transportation has released BUILD awards and that a future BUILD round and a Bridge Improvement Program (BIP) for medium and small bridges are expected. She noted a USDA Rural Water Revolving Fund NOFO (about $1,000,000) with an application deadline she listed as August 7 and recommended local staff monitor the Bureau of Reclamation—s WaterSMART opportunities, which remain on hold but may return.
On mitigation, Denberg recommended that local governments: plan conservatively for budgets, stay connected with professional associations and the state delegation, and "tell your story" to demonstrate local impacts of federal changes. She also noted state-level resources, including a Federal Funding Cuts dashboard the state released and the Just Security litigation tracker for lawsuits affecting federal programs.
The committee asked for follow-up materials. Denberg said she would send the presentation and contact details and promised to research the committee's specific questions on transportation injunctions, NIH research grants affecting local campuses, and affordable-housing tax-credit language.
Votes and committee business: the committee approved minutes from June 20, 2025, by verbal assent at the start of the meeting. Later, staff member Liz reported progress on congressional-directed spending requests, saying multiple House appropriations listed Aurora projects (fire apparatus, flashover simulator, and three transportation projects) and that the city was awaiting Senate action on a wastewater lift-station request and public-safety drones.
The committee scheduled its next meeting for Aug. 15, 2025, at 11 a.m.
Ending: Denberg urged staff to sign up for state bimonthly local-government resource calls and for the Department of Local Affairs (DOLA) newsletters. She left contact information in follow-up materials she said she would circulate to the committee.

