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City officials report uncertainty as federal review delays some large transportation grants
Summary
Transportation and Public Works staff told the Mobility Committee that several federal grant agreements are under federal compliance review triggered by a January executive order and U.S. DOT guidance, leaving grants such as the Barton Springs Road bridge and a large neighborhood access grant at higher risk until reviews conclude.
Paige Warner, Interim Chief of Staff for Transportation and Public Works, briefed the Mobility Committee on May 15 about the status of federal mobility grants and ongoing federal reviews.
Warner said an executive order issued January 20 prompted reviews of grants related to the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. U.S. DOT guidance issued in March requires compliance reviews for discretionary grants without executed agreements; those reviews examine topics such as diversity, equity and inclusion (DEI) and environmental initiatives. Warner noted an April letter from the U.S. Transportation Secretary reminding grant recipients of legal obligations tied to DEI and immigration compliance. A 90-day review window that staff had expected to conclude April 20 had not produced definitive outcomes as of the May 15 briefing.
Warner identified a subset of city awards at higher risk because the grant had been awarded but the agreement had not yet been executed: the BUILD/BRIDGE investment for Barton Springs Road bridge (referred to in the briefing as the Barton Springs Road bridal investment program), the Safe Streets for All 2024 awards and the Neighborhood Access and Equity grant referenced in the briefing as the $105,000,000 "cap and stitch" grant. Warner said staff continue to work with the city's Intergovernmental Relations Office and federal contacts (USDOT, FHWA) and are tracking the House reconciliation package that could affect one of the large grants.
Warner said other discretionary awards have signed agreements or obligated funds and are considered lower risk. She told the committee the city continues to pursue discretionary grant opportunities and will seek earmarks through the intergovernmental relations office for future federal funding cycles.
Committee members asked about timing; a council member noted the 90-day review period ended April 20 and that the committee had not yet received final information. Warner said staff have not received official determinations as of the briefing and are monitoring developments.
