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Passaic mayor warns federal grant uncertainty may force budgeting adjustments; finance report forthcoming
Summary
Mayor and administration officials told the City of Passaic council on April 1 that several federal and HUD-funded programs face uncertain funding, potentially affecting WIC, vaccines, housing repairs, recreation and infrastructure; the finance director will present a detailed budget report at a later meeting.
The mayor told the City of Passaic council on April 1 that a number of federal grants and reimbursements are uncertain and that municipal leaders are preparing for tighter budgets in coming months.
The mayor said the city has been informed that certain health grants, some COVID-related funding, and HUD communications have been reduced or are not being returned promptly. He identified programs that could be affected — including WIC, vaccination clinics, recreation programs and housing repair or first‑time homebuyer assistance — but did not provide dollar amounts.
The mayor said the city’s director of community development, Joyce Han, told him that HUD has been slow to respond to calls and emails and that municipal staff have not received clear direction on grant availability. The mayor said the city has historically kept its tax rate under 5 percent and is preparing a prioritized list of projects to align with likely funding priorities.
City Finance Director Omar Garcia and Business Administrator Fernandez were described as preparing a full presentation to the council on upcoming budget impacts. The mayor said he asked department directors to review priorities and consider tailoring grant applications to align with likely funding streams.
Council members were told the city is exploring options and will aim to use funds already allocated responsibly. The mayor cautioned that without new grant revenue the city would face difficult choices about which nonessential projects to delay or cut and noted the city cannot readily eliminate some essential services, such as police and fire staffing.
The mayor also made a joking reference to a social-media post about a “$100 million koi pond” and clarified that the post was an April Fools’ Day joke and not an actual grant or project.
— Ending: Finance Director and business administrator to provide a detailed briefing to council on grant impacts and the draft budget at a future meeting.
