More than half of the federal funding allocated to the City of Boulder this year — at least $55 million — has not yet been disbursed and could be vulnerable to budget cuts under the Trump administration, according to a new city analysis released March 19.
The funds, part of $91 million in total federal awards earmarked for Boulder, support a wide range of local programs, including affordable housing, transportation safety improvements and social services. But with the White House pursuing sweeping agency budget reductions and staffing cuts, city officials say they are watching for possible disruptions. Some of the money has already been spent and is awaiting federal reimbursement.
The uncertainty comes at a time when Boulder is already facing financial strain. The city council approved a nearly $590 million budget for 2025 that was leaner than in previous years due to rising operational costs and the expiration of major revenue sources, mainly Covid-era funding. The at-risk federal funds represent a significant portion of the city’s total budget, raising concerns about the future of key programs if those dollars are pulled.
So far, the city has not received any formal notice that funding will be canceled or delayed. “We still do not have clarity as to which of these [grants] might be impacted,” Sarah Huntley, director of communication and engagement for the City of Boulder, told Boulder Reporting Lab.
City officials are keeping a close watch on federal funding policies that may affect Boulder’s financial planning. “The city is continuously monitoring potential changing legislation and policies proposed that may implicate the city’s federal awards,” city Budget Officer Charlotte Huskey said. “To the extent possible, we are focused on prioritizing project development and implementation strategies to not cease activities that may be implicated by federal funding decisions.”
Some city leaders are urging caution in response to the uncertainty. “We should not overreact to things he has not yet done,” Councilmember Mark Wallach, who is a member of the city’s financial strategy committee, said of President Trump. “Trying to project, and act on your own projections, is a little bit of a fool’s errand because we don’t know what it’s going to be like tomorrow.”
Much of the at-risk funding supports infrastructure, housing and community programs, including $25 million in Covid-era funding for HOP bus operations and several million for housing programs. The largest share of federal dollars is designated for transportation projects, including several Vision Zero projects aimed at improving street safety — affecting major corridors including 30th Street, 28th Street, Folsom Street and 19th Street.
Other city programs potentially in limbo include public safety initiatives, such as mental health crisis response and de-escalation training for police officers, as well as a program coordinator to coordinate the city’s response to homelessness between departments.
Beyond the $55 million at risk, another $24.2 million in federal grants remains in a holding pattern as the city awaits final award execution. That includes $23 million the city was awarded for Boulder’s Safe Streets for All program, a federal initiative aimed at reducing roadway fatalities, and $1.2 million the city applied for to replace essential protective gear for firefighters.
The extent to which Boulder’s funding may be affected remains unclear. While federal agencies continue to distribute grants, the Trump administration has repeatedly threatened to withhold funding from sanctuary cities like Boulder, which limit local cooperation with immigration enforcement. It is uncertain whether legal challenges or congressional intervention could shield these funds. Transportation funding, in particular, has been singled out by the administration as potentially at risk for sanctuary cities.
For now, Wallach said the financial strategy committee is focusing on the broader challenges of balancing a city budget that was already under strain before federal dollars became uncertain. The city has over $300 million in unfunded expenditures, he said, and is trying to fill gaps left in funding after Boulder County cut millions to safety net services for local nonprofits and is planning to distribute fewer affordable housing tax dollars to the city than some councilmembers anticipated.
Wallach said the financial uncertainty from the White House adds another layer of difficulty to long-term budget planning. But, for now, he remains cautiously optimistic. “So far, so good,” he said.
Correction: A previous version of this story stated $20 million in Covid-era funding for services for people experiencing homelessness, childcare subsidies, eviction prevention and behavioral health initiatives had not yet been disbursed. That money has been disbursed. The Covid-era funding that hasn’t yet been disbursed is $25 million earmarked for HOP bus operations .
$590 M budget and $300 M in unfunded liabilities? Doesn’t sound optimistic to me.
Hunker down.
Re: Boulder budget uncertainty:
So why are we spending @ $90,000,000 to build a massive cement wall to the detriment of the South Boulder CU wetlands, in order to protect 260 homes from a possible 100 year flood at a cost of $350,000 per home? Shouldn’t we be spending these funds on something that benefits the entire community, especially in these times of dubious federal funding? Time to revisit CU South flood mitigation plan.
Unfortunate, of course but maybe this will spark some discussion of funding priorities for the city. If we could leave some of the ill-conceived projects like destroying the south Boulder wetlands for CU and upending traffic with reducing lanes on Iris & 30th, we could use this for stuff we actually need.