Coconino County braces as federal funding freeze clouds FY26 planning

Coconino County leaders told the Board of Supervisors on Feb. 11 that a newly announced federal freeze on disbursements has introduced short-term uncertainty for grants and pass-through programs that the county relies on.

County Manager Andy Bertelsen said the county learned the same morning that the Office of Management and Budget had issued a memorandum pausing federal disbursements to agencies, and that staff and outside advocates were immediately working to identify impacts to county programs and local partners. "In fiscal year FY25, we received $76,000,000," Bertelsen said. "So it's a significant amount." He noted the county's total budget is roughly $500 million, making federal funds a substantial share of resources for some departments.

The county's treasurer, Sarah Benatar, is tracking cash-flow effects for local entities including school districts, fire districts and special districts, while…