City staff warn federal grants face extra review after presidential executive order; some awards proceed

City of Austin intergovernmental and transportation officials told the Mobility Committee on Feb. 20 that a recent presidential executive order and subsequent Department of Transportation guidance have prompted federal agencies to review discretionary grant spending, creating uncertainty for some pending awards while previously executed or congressional‑earmarked funds continue to be largely protected.

Carrie Rogers, the city's intergovernmental relations officer, described the timeline of recent federal actions and said city staff "are continuing to review pending grant agreements" and asked departments to proceed unless they received an explicit stop order. "I apologize I am not here with better news," Rogers said during her first presentation in a council setting.

Richard Mendoza, director of Transportation and Public Works, and Rogers identified categories of grants and how they are affected: - Executed grants: Agreements already signed and executed are generally on stronger legal footing; many are reimbursement based and funds are drawn down as project invoices are submitted. - Congressional earmarks (community project funding): Those were appropriated by Congress and have not been affected by the executive order, Mendoza said; he cited the Wishbone Bridge near Longhorn Dam as an example of a congressional earmark whose work is continuing. - Pending discretionary grants: Grants that have been awarded but for which funding agreements are not yet fully executed remain subject to agency review and potential delay.

Which projects were discussed: Staff listed several large federal awards the city has secured since 2022 including climate and mobility grants (for example, a Climate Pollution Reduction Grant), Cap and Stitch (Reconnect Communities/Cap and Stitch), urban trail projects, Vision Zero safety enhancements, and mobility hubs. Staff highlighted several projects as particularly vulnerable because the funding agreement had not yet been fully executed; they said the climate pollution reduction grant is reimbursement‑based but the first year focuses on planning and interagency coordination. Mendoza said the city has submitted a reimbursement invoice on the Reconnecting Communities/Cap and Stitch project and is proceeding cautiously.

Process notes and next steps: City staff fielded questions from council members about drawdown schedules and reimbursement mechanics. Rogers said federal agencies will try to comply with the administration's guidance and that city lawyers are monitoring legal developments; city staff and the intergovernmental relations office will continue daily monitoring and will notify project teams if they receive stop orders.

Speakers quoted or noted in this report: Carrie Rogers (Intergovernmental Relations Officer), Richard Mendoza (Director, Transportation and Public Works).