Committee hears update: BRIC pause lifted, EPA community grants accessible; federal budget uncertainty remains

City finance staff told the Finance Committee on April 28 that several paused federal grant actions have resumed and that the city is monitoring federal budget developments that could affect future funding.

Dave (finance staff) reported that FEMA's Building Resilient Infrastructure and Communities (BRIC) program was previously paused but the pause has been lifted; the city has a $6,000,000 BRIC grant for a stormwater project already under construction. He also said the U.S. Environmental Protection Agency's community change grants — which had been paused since late February — were showing as available in the EPA grants portal and that the city would move quickly to submit reimbursement requests for invoices dated since February.

Staff warned of continued uncertainty as Congress works on federal appropriations. Dave noted some early signals in congressional discussions about municipal bond interest tax-exemption but said members of Congress have publicly defended maintaining the exemption; the committee intends to introduce a resolution supporting retention of the tax exemption for municipal bonds.

Committee members asked about investment income and borrowing costs. Director Schmiedtke said the city budget includes higher investment income assumptions tied to current interest rates, which would be positive if rates remain elevated, but cautioned that higher rates also increase the cost of borrowing for capital projects. Staff identified potential risk areas in the Inflation Reduction Act and the bipartisan infrastructure law, and noted the city's capital plan includes roughly $13 million that assumes federal direct-pay subsidy support; that element could be at greater risk depending on federal action.

No formal committee action was required; staff will continue to monitor federal developments and report back as necessary.