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What can Communities Relying on Discretionary Grant Programs like CRISI and RCE do Now?

Writer's picture: Tate LindenTate Linden

It’s been a wild couple days for grant recipients with funds still waiting for disbursement. We had four major changes in direction in less than two days, and it’s not over yet. 


The story so far:


A federal judge has issued a temporary stay on an executive order that paused federal grant and loan disbursements, allowing payments to resume until at least February 3, 2025. In response, the Office of Management and Budget (OMB) retracted its initial memorandum and the White House clarified that the executive orders remain in effect. The judge then reaffirmed that the stay on enacting the EO would remain in place until the 3rd. 


This should mean that payments will proceed on schedule for the next week. 


For rail-connected communities relying on discretionary grant programs like CRISI and RCE, this creates a precarious situation. While current payments can proceed temporarily, future disbursements may be delayed or reallocated if the executive order is reinstated. Communities with infrastructure projects tied to these grants - such as grade crossing improvements or rail corridor upgrades - are urged to immediately take the following steps:


1: Confirm the status of your grant disbursements with the Federal Railroad Administration (FRA).


2: Inform contractors, vendors, and project managers of the potential for future funding delays to adjust timelines and manage resources effectively.


3: Engage local and state officials to advocate for sustained funding to prevent disruptions to critical projects. This is particularly important in conservative districts and those with equity challenges. 


4: Maintain transparency with the public, especially for projects that directly impact safety and accessibility.


We expect the situation will shift multiple times before the 3rd, and after. And even if the EO is ruled unlawful, nothing prevents the administration from pulling funding from specific projects.


By default, grant recipients agree to FRA's General Terms and Conditions. Attachment 1 of that document (as of 2024) states that the “FRA may terminate this Agreement and all its obligations under this agreement if [...] FRA determines that termination of this Agreement is in the public interest.” (See 10.2(a)(5) in comments) 


Given that the current administration has taken the position that DEI is discriminatory, it's critically important that all communities that relied on Justice40 or other equity-linked criteria in their application seek expert legal guidance and be prepared to defend their award.

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