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Montclair warns that federal grant reviews could pause millions in local projects
Summary
City staff told the council a White House memo and follow-up guidance could pause reviews of some federal grants, and the city manager said Montclair has about $116 million in awarded or pending grants and roughly $21 million that may be subject to review, affecting projects including Saratoga Park and a proposed Trans Center acquisition.
Montclair officials told the city council that recent White House guidance and court action have created uncertainty around federally connected grant funding and could pause some award activity.
The city manager briefed the council that a White House memo (OMB M-25-13) and subsequent guidance prompted a temporary restraint on some programs and that a court has issued a temporary restraining order affecting aspects of the review. "We currently have about a $116,000,000 in grants that have been, a, either awarded, are pending, or that we have recently applied for," the manager said, adding that "amongst those grants, there are about, 21,000,000 that, are potentially subject to this." He warned staff to proceed cautiously when federal dollars may be involved.
Why it matters: Several capital projects and grant-dependent efforts could be delayed if federal funding tied to those grants is paused. The manager cited $2 million for Saratoga Park and a $25,000,000 BUILD grant the city has applied for to acquire the Trans Center property from Caltrans as examples of awards or applications that could be affected.
Council members asked for clarification about specific funding streams. When asked whether Gold Line allocations were at risk, the manager said no: "The Gold Line money is all state funds. It doesn't come at all from the federal government," and therefore is not affected by the federal review.
Next steps: City staff will continue to track court developments and federal guidance and have been directed to raise any questions about particular grants before expending funds tied to those awards. The manager said the city will notify the council if there are definitive changes to award status or funding availability.
