City report warns ‘HR 1 / Big Beautiful Bell’ could cut federal grant funding and tax incentives, officials say

City staff presented a report Feb. 3 that outlined how a newly referenced federal law — described in the presentation as HR 1 or the 'Big Beautiful Bell' — has changed tax and grant provisions and may affect city programs and funding.

Eva Gerard and Camila Font, who introduced the report to the committee, said HR 1 had been enacted in 2025 and made 'significant' changes to labor law and tax provisions, altered grant programs and rescinded some incentives for infrastructure and clean-energy projects. The presenters told the committee the changes have resulted in loss or termination of federal incentives and credits that had supported electric-vehicle purchases, clean-energy projects and certain infrastructure programs.

The presentation included city staff estimates of very large potential federal funding losses. In the presenters’ description, the 'loss of federal grants' to affected city departments was discussed in dollar figures described in the transcript as approximately in the hundreds of millions to billions; presenters specifically cited appeals filed with the U.S. Department of Energy regarding port-related grants and said some funds had been placed in account before termination. Staff said they were focused initially on grants provided directly to the city but were also working to trace indirect federal funding that reaches the city through state or regional agencies.

Councilmembers sought further detail about which departments planned to apply for the now-terminated grants, how the changes would affect vehicle purchases and charging infrastructure, and whether alternatives or indirect federal funding sources (for example, state programs or Metro) could fill gaps. Presenters said compiling that information would take additional work and that staff would return with follow-up analyses. The committee voted to concur with the Civil Rights, Equity, Immigration, Aging and Disability committee on the report.

The presenters also noted that some beneficial tax provisions in the law may remain, such as bond-exemption provisions and permanent programs for affordable housing funding, but that the net impact to city programs required further evaluation.