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Hampton staff brief council on potential federal-grant disruptions after recent executive orders; $121.7M federal grant portfolio tracked
Summary
City staff told the Hampton City Council that recent presidential directives and federal guidance have prompted a citywide review of federal grants; staff reported a federal-grant budget of about $121.7 million and recommended continuing essential grant-funded positions while monitoring reimbursements and legal developments.
City staff briefed Hampton City Council on Feb. 12 about possible impacts to federal grants arising from recent presidential directives and related federal guidance.
Miss Walker and city staff said they are tracking executive orders that instruct agencies to review or terminate federal diversity, equity, inclusion and accessibility (DEIA) programs and to pause certain federal financial-assistance activities for review. The Office of Management and Budget issued a memo Jan. 27 telling agencies to pause related disbursements and announcements; that memo was rescinded Jan. 29, but staff said federal review and legal challenges remain active and guidance is continuing to evolve.
The city reported a total federal-grant budget of approximately $121,700,000, grant expenditures to date of roughly $17,300,000, unreimbursed expenditures of about $2,000,000 and about $4,600,000 encumbered in purchase orders. Staff said 81 positions are currently funded in whole or in part by federal grants; the staff presentation listed program examples that would be affected if funds are delayed or withdrawn, including victim-witness services, domestic-violence support, special-education early-intervention programs, HUD and FEMA funding, and an EPA resilience grant discussed as high‑risk.
Miss Walker outlined steps the city has taken: inventorying all grant awards and contract terms, expediting reimbursement requests, seeking written assurances from granting agencies where possible, reviewing termination clauses in grant contracts and performing an ongoing risk assessment of grants and grant-funded positions.
City Manager Mary Bunting and other staff recommended a balanced approach rather than an across-the-board spending freeze. Bunting said some federally funded human-service positions "would do more harm to our community" if immediately eliminated and asked council for approval to keep federally funded grant positions active while staff pursues reimbursements and monitors legal developments.
Council members asked whether the city has seen slowed reimbursements; staff said some reimbursements for CDBG and HOME programs arrived after recent submissions, while other late-December and January submissions have not yet been paid and are under close monitoring.
Staff identified three near-term grants of concern: an EPA resilience award (about $20 million) that could fall under federal review, FEMA-related funding streams and a NASA arrangement that formerly was a contract for steam services but now operates as a grant. For projects where agency guidance permits spending, staff advised continuing limited outlays and submitting reimbursement requests; for higher-risk awards, staff recommended holding major new expenditures until legal clarity is achieved.
The city will continue to track federal memoranda, agency guidance and litigation; staff said they will propose policy direction on FY 2026 grant spending and prioritize essential programs if federal funding is reduced or delayed.
