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This Week in D.C.

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You can find below an archive of the This Week in D.C. section of the GMA weekly newsletter dedicated to federal updates impacting our communities. Contact: Claire Chan, GMA Manager of Research and Federal Relations

Feb 20, 2025: Congressionally Directed Spending and Federal Budget Talks

Congressionally Directed Spending

The Office of Senator Jon Ossoff announced yesterday they will begin accepting requests for FY2026 Congressionally Directed Spending (CDS) Projects next Monday, Feb. 24. Similarly, Senator Raphael Warnock’s office is gearing up to accept requests as well.

The CDS and Community Project Funding (CPF) process allows cities and other non-private entities to apply for federal funding for community projects, including government buildings, water system expansions and transportation improvements. Applicants should be mindful of the requirements tied to these funds, which are similar to grants. It will take time for your request to work through the appropriations process, and approval is not guaranteed.

Not every Georgia House member participates in the appropriations process or has published information about their FY2026 requests process yet. Please contact them directly to inquire. If you are not sure whether the CDS/CPF process is appropriate for your project, a staffer within the congressional office will be glad to chat with you about eligibility. Act fast as application windows may only be 2-3 weeks long.

Resources:

There was uncertainty leading up to the start of the new Congress on whether the CDS/CPF process would resume in FY2026. GMA sees these updates from our congressional members as a positive indication that federal funding could still be available for local projects.

Federal Budget Talks for Context

What has happened only four times in the last fifty years? Congress passing a federal budget on time.

Nearly halfway into federal FY 2025, which runs from Oct. 1, 2024 through Sep. 30, 2025, Congress has yet to approve a full budget for this fiscal year with both chambers engaging in those negotiations now. Per a continuing resolution Congress passed last December, the federal government is currently operating on pre-existing spending levels through March 14, 2025. If Congress does not pass a budget for the balance of FY2025 by this date, or pass another continuing resolution, the government shuts down.

As FY2025 budget negotiations continue, procedures outlined in the Congressional Budget and Impoundment Control Act of 1974 state that it is almost time for next year’s appropriations process to commence. And in some ways, they have, with an opportunity for cities to access some federal funding. If you have a project in mind for the FY2026 CDS/CPF process, engage with your members of Congress today!

Feb. 13, 2025: Government Efficiency Efforts, Federal Grants Processes 

‘Government Efficiency’ Efforts

President Trump has established a new entity known as the Department of Government Efficiency (DOGE), which, despite its name, is not a cabinet-level department but an entity created through Executive Order of the President. Through DOGE, the new Administration hopes to reduce government-wide spending and bureaucracy. The counterpart to DOGE in Congress – the Subcommittee on Delivering on Government Efficiency – is chaired by Georgia Congresswoman Marjorie Taylor Greene of the 14th district, and the subcommittee held its inaugural hearing yesterday, Feb. 12. In her opening remarks, Chairwoman Greene affirmed the subcommittee’s agenda to advance solutions that reduce government “waste.”

Several executive actions in recent weeks, not including the federal funding actions covered in previous updates, build on the DOGE efforts:

  • Regulatory: On Jan. 31, the Administration issued an Executive Order and Fact Sheet calling for a “10-for-1 rule” whereby for every newly promulgated regulation, an agency must identify at least ten existing regulations to be repealed. This rule boosted a similar “2-for-1 rule” instated during President Trump’s 1st term.
  • Personnel: On Feb. 11, the Administration issued an Executive Order and Fact Sheet calling for “workforce optimization” across as many as 400 federal agencies. The Order requires that agencies hire no more than one employee for every four that depart from federal service, with certain exceptions for public safety and immigration enforcement functions.

While the impacts of these government reductions on cities may not be felt for months or even years, they have the potential to affect how cities access and utilize federal resources such as grants (for example, fewer regulations may expedite projects but less agency staff for support may cause delays to the same projects). GMA supports efforts to make the federal government work more efficiently for cities of all sizes and will continue to monitor and report on these changes.

Rebuilding Momentum to Streamline Grants Processes

During the last Congress, the bipartisan Streamlining Federal Grants Act of 2023 was introduced but did not pass. This bill reflected the struggle many small and rural communities face when it comes to access (or lack thereof) to federal funds by requiring agencies to reduce the complexity of grant applications and provided more training and technical assistance. Senator Ossoff and Senator Warnock both signed on as co-sponsors.

The National League of Cities is now working with the original co-sponsors to reintroduce the bill and is seeking your city’s input to ensure the bill reflects the needs of local governments. Register here for an informal office hour with NLC’s legislative team next Wednesday, Feb. 19 from 3-4 p.m. to provide your input and ask questions.

GMA supports this legislation because it would allow more cities, especially smaller cities, to access critical federal funding.

Update on Federal Funding Freeze

On Monday, Feb. 10, U.S. District Judge John McConnell, the same judge that ordered a halt to a near government-wide funding freeze, accused the Administration of continuing to withhold certain funding in violation of the court order. GMA awaits further clarity from the Administration and the courts on which actions to withhold funds are constitutional and which are not. GMA is aware of several cities that have encountered delays to their federal grants and, we continue to encourage cities to check with the granting agency on the status of their grants and to document related costs or impacts resulting from any delays or cancellations.

Feb. 6, 2025: Future of Federal Funding, Immigration and Trump’s Cabinet 

Update on Federal Funding Availability

A Temporary Restraining Order (TRO) issued last Friday, Jan. 31 by the US District Court in Rhode Island is the latest in a series of events surrounding the status of federal financial assistance, including grants and loans for city projects.  

The TRO was issued in response to lack of clarity around the scope and impact of a January 27 memo from the Office of Planning and Budget (OMB), M-25-13, and several other executive actions regarding federal funding. 

As a result of the TRO, your city likely will NOT see any change to federal award(s) by the granting agency at this time on the basis of the OMB memo or recently issued Executive Orders. Agencies DO STILL have discretion to modify access to funds on their own accord. Please continue to notify NLC and GMA of any affected projects or funding.

Access NLC’s summary of the recent Presidential Executive Orders and their impact to local governments (limited to NLC members)

Update on Immigration-Related Orders

The Administration’s efforts at immigration reform have raised questions about the compliance and cooperation of local law enforcement with federal immigration policies. Section 17 of the Jan. 20 executive order “Protecting the American People Against Invasion”  calls for withholding federal funds from jurisdictions with sanctuary policies – a practice already banned in the state of Georgia. Of note:

  • Yesterday, the Attorney General’s Office issued the “Sanctuary Jurisdiction Directives” memo calling for an investigation of state and local “misconduct” against federal immigration laws as well as disqualification from DOJ funding for any jurisdictions found to have sanctuary policies. Within 30 days, their office will report which grants this requirement applies to.
  • On Jan. 29, the U.S. Department of Transportation issued a memo stating that DOT programs “shall prioritize projects and goals that... require local compliance or cooperation with Federal immigration enforcement.”
  • There are efforts within Congress to “strengthen cooperation between local and federal law enforcement” and further crack down on sanctuary policies.

It remains unclear how these policies will impact cities. GMA is hoping further administrative actions and court rulings will clarify the conditioning of funds on local cooperation with immigration enforcement.

Click here for the recording of the Jan. 31 webinar, “Impacts of Immigration Executive Orders on Local Governments," hosted by the Local Government Legal Center

Who’s Who in the Trump Administration?

In the last few weeks, President Trump has been assembling his Cabinet of advisors who will oversee federal departments and work to advance his agenda. Many of the Cabinet nominees are currently undergoing Senate confirmation hearings.

Here are some people-to-know who will be taking the helm of agencies your city may interact with the most. (The status of their appointment or confirmation is as of 2/6/25.)

  • Alexander Meyer, Director, White House Office of Intergovernmental Affairs (appointed)
  • Christine Serrano Glassner, Deputy Director, White House Office of Intergovernmental Affairs (appointed)
  • Sean Duffy, Secretary, U.S. Department of Transportation (confirmed)
  • Lee Zeldin, Administrator, U.S. Environmental Protection Agency (confirmed)
  • Scott Bessent, Financier, U.S. Department of Treasury (confirmed)
  • Chris Wright, Secretary, U.S. Department of Energy (confirmed)
  • Scott Turner, Secretary, U.S. Department of Housing and Urban Development (confirmed)
  • Doug Collins, Secretary, U.S. Department of Veteran Affairs (confirmed)
  • Lori Chavez-DeRemer, Secretary, U.S. Department of Labor (pending)
  • Howard Lutnick, Secretary, U.S. Department of Commerce (pending)
  • Brooke Rollins, Secretary, U.S. Department of Agriculture (pending)
  • Kelly Loeffler, Administrator, Small Business Administration (pending)

GMA is connecting with the newly appointed Deputy Director of the White House IGA office in the coming weeks to kickstart a working relationship on behalf of Georgia cities and to let them know we are here to be a partner and a resource to this new Administration.

Jan. 30, 2025: What Cities Should Know About the Federal Funding “Freeze”

What Has Happened

  • Since the inauguration of President Trump, the White House has unveiled a series of Presidential Actions in an effort to align Federal programs with the new administration’s priorities and to repeal provisions and policies viewed to be in conflict with those priorities.
  • Many of these actions unwind the priorities of the Biden administration, including priorities previously announced under the 2021 Infrastructure Investment and Jobs Act (IIJA) and the 2022 Inflation Reduction Act (IRA). Areas and activities that have come under heightened review include the “green new deal” and diversity, equity and inclusion (DEI).
  • The executive actions culminated in M-25-13, a Jan. 27 memo from the Office of Management and Budget (OMB) calling for a temporary pause beginning Jan. 28 at 5 pm ET on the obligation and disbursement of funds for all Federal financial assistance, as well as any agency activities implicated by the preceding executive orders, to the extent permitted by law.
  • Local governments, nonprofit organizations, universities and other entities that receive federal funding could be impacted and see cancellation of grant announcements and awards already made if a conflict arose.
  • Federal lawmakers from both parties described the OMB memo as being “broadly written” and were hearing from constituents across business, government and nongovernment sectors that obtaining clarity was paramount. Communicating impacts to your city makes a difference.
  • In response to various interpretations of these executive actions and questions about the ramifications, the Office of Management and Budget provided initial clarification, i.e. noting that direct assistance to individuals such as Social Security, welfare, food stamps and Medicare would not be affected.
  • The “funding freeze” faced immediate legal challenges, and just before it were to take effect on Tuesday, a federal judge halted the implementation of the OMB memo to allow until Monday, Feb. 3 for the courts to assess the consequences.
  • On the afternoon of Jan. 29, OMB issued M-25-14, a follow-up memo rescinding M-25-13 effectively overturning the blanket freeze, while upholding previous orders implicating funding for clean energy, DEI and other focus areas of the Administration.
  • In her statement on Wednesday, White House Press Secretary Karoline Leavitt said, “The Executive Orders issued by the President on funding reviews remain in full force and effect and will be rigorously implemented by all agencies and departments.”
  • Citing the White House Press Secretary’s statements, a different federal judge who is presiding over litigation filed by 23 state attorneys general against the freeze stated that he would be “inclined to grant a restraining order”. Such order has yet to be issued.

What Your City Can Do

  • Always refer to the source material (such as the written executive order or the guidance document provided by the agency) first for the latest and most accurate information. News articles are sometimes incomplete or misleading. If you have questions about a specific grant your city received, reach out to the agency directly and ask about the status of your award.
  • Review federal grant agreements and contracts your city has in place, including payment obligations and drawdown procedures.
  • In order to advocate for the preservation of local investments and future such investments by the new Congress and the Administration, the National League of Cities is gathering data on pending awards and any disruptions encountered by local governments in receiving federal support. Please fill out this form to inform NLC of any recent disruptions to federally funded projects your city manages. If you have encountered a disruption, please contact your member(s) of Congress and also share your information with Claire Chan of the GMA staff.
  • Document the related costs and losses that would result from a disruption or cancellation of a federally funded project.
  • When communicating with your members of Congress, describe the consequences if agencies were to withhold funding for projects that are underway. Focus your messaging on the actual impact to your residents, taxpayers, progress of community projects, and municipal budgets.

So What Now?

  • Every Presidential transition comes with a shake-up of the existing structure and a realignment of priorities to fit the new Administration. Actions and reactions will happen at a rapid pace. With lots of information swirling, cities must first get the facts.
  • Proposed actions have called into question the validity of certain Congressionally approved programs. GMA’s immediate focus is on examining the impact of executive actions on community projects that rely on federal funds.
  • Now more than ever, your city needs to stress the direct and indirect benefits of federal funding on your community via improvements to infrastructure, housing and other essential public services.
  • GMA is working closely with the National League of Cities, the International Municipal Lawyers Association, members of Georgia’s congressional delegation, and agencies to understand the changes and provide the best guidance to cities based on information that is changing at a very rapid pace.