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Staff to assess impact of OMB pausing federal disbursements on CDBG and other grants
Summary
Committee members raised concerns after an Office of Management and Budget memo placed a temporary pause on certain federal grants and financial assistance; staff said it would review impacts on CDBG and other federal grants and report back.
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City staff notified the Government Performance and Financial Management Committee on Jan. 28 that they are assessing the impact of a same-day Office of Management and Budget directive that placed a temporary pause on certain federal grants, loans and financial assistance programs, and that they will report back to council as they learn more.
At the start of the meeting staff flagged the directive and said they were evaluating whether the pause affects the City of Dallas' various federal grants, including the Community Development Block Grant (CDBG). Staff cautioned that the ARPA funds already disbursed to the city are not reimbursement grants and, as of the briefing, the city holds the grant cash; staff said those funds are not expected to be immediately affected though they will continue to monitor the situation.
Committee members urged urgency, asking staff to prepare contingency plans and to reconvene the committee or call a special meeting if nonprofit partners told the city they faced imminent closures because of federal freezes. Staff said they were coordinating with the Office of Government Affairs and the city's federal lobbyist and would share updates as they gain clarity.
The meeting lost quorum and adjourned at 1:29 p.m. before the committee could take formal action on CDBG-related reprogramming recommendations.
