The Pima County Courthouse building in downtown Tucson, Arizona.
Pima County officials continued to assess the impact on the county budget from the federal funding freeze and wave of Executive Orders (EO) issued since President Trump took office during today’s Board of Supervisors meeting.
So far, 76 EOs have been signed.
Sarah Davis, senior advisor in the County Administrator’s office says the county is reviewing memoranda and actions tied to potential review pauses or freezes of federal dollars as referenced in the Office of Management and Budget (OMB) memorandum.
The county is closely reviewing OMB M-2511 “Memorandum to the Heads of Departments and Agencies” which paused funding related to the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA) as well as OMB M-23-13 “Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs” which was a pause on federal funding for a 90-day review period, but has since been rescinded.
“Funding is still open that we know of,” Davis said.
However, additional potential budget cuts could result from the expiration of the continuing resolution H.R. 10545, American Relief Act on March 14, which expands federal spending.
County officials identified approximately 150 county grants at risk due to the federal funding freeze, totaling about $150 million in expenditures and affecting 20 departments, predominantly the Grants Management Innovation, Pima County Health Department and Community Workforce Development departments.
About 63% of funding or about $94 millionm comes from the American Rescue Plan Act (ARPA), Emergency Rental Assistance Program (ERAP) which have both been awarded and are winding down.
Other affected programs include the Emergency Food and Shelter Program (EFSP) which is closing out and the FEMA Shelter Services Program (SSP) which is awaiting reimbursement of about $5.9 million.
“The remaining expenditures which represent $56 million are the ones we need to look closely at, they’re representative of discretionary grants or importantly recurring grants which we sometimes call formula grants,” Davis said.
These are annual award amounts that typically pass through state agencies before reaching the county.
16 grants tied to the IIJA and IRA, are either currently active or potentially paused, if not started.
At least one grant has been identified as paused, the $2.8 million Safe Streets for All grant from the Federal Highway Administration (FHA).
Since House Republicans narrowly passed its multi-trillion dollar budget proposal last Tuesday, including provisions on border security, energy, and Medicaid, county officials are also reviewing potential impacts on the 30% of Pima County residents who are enrolled in the Arizona Health Care Cost Containment System (AHCCCS).
“That represents 2 million Arizonans and roughly 300,000 at any given point in Pima County are insured under our state Medicaid,” Davis said. “The majority of that are adults ages 22-64, children zero to 17.”
Davis said the population most at risk includes those in the Medicaid expansion group, which covers individuals earning up to 138% of the federal poverty limit and childless adults.
Medicaid covers critical services such as acute medical care, behavioral health care, substance use treatment, long-term care, and KidsCare, the state’s health insurance program for children.
County officials are also monitoring the impact of newly implemented tariffs on infrastructure projects.
Officials are also continuing to review the effects of:
- significant reductions/ modifications/ closures of federal departments, programs and services
- considerable hiring freezes/ staffing adjustments to federal agencies especially those that the county and its residents rely on for critical and essential services of funding
- county impact of any federal funding pause or non-compliance with existing or new court orders
- updates on recoupment of federally issued grant award funding
The situation remains fluid, officials said, but the county remains in compliance with federal directives and are reviewing executive orders from Elon Musk’s Department of Government Efficiency (DOGE) that asked for written justification for any expenditures pertaining to contracts and grants that was issued on February 26.
The county administration will continue providing updates on federal and state executive, legislative and judicial actions at each Board of Supervisors meeting, with a broader update expected in the coming weeks on federal workforce reductions.
Following Davis’ county budget presentation, Supervisor Steve Christy asked, “There’s a possibility that the grants that you are naming as vulnerable, could be that they’re open today, but there could be clawbacks tomorrow?’
“Correct,” Davis said.
As the county looks ahead to next year’s budget, Supervisor and Chair, Rex Scott asked if the $56 million in formula grants would have the greatest impact on the board’s budget considerations.
“There are programs that are just a formula that come through the state to the county based on our population and services that we have used consistently,” said County Administrator Jan Lesher. “That’s a $56 million number each year, that is I think, of great concern.”
County officials also discussed the possibility of increasing the primary tax rate by 48 cents.
“That’s approximately $9.40 of additional property taxes for Pima County residents,” Supervisor Matt Heinz said.
Supervisor Jen Allen requested updates on relevant state legislative actions that could further impact the county.
“I thought it would be helpful for people to be reminded that we do have federal representation and if you do not like what you are hearing, I would recommend you contact Juan Ciscomani,” Heinz added.
Scott asked, “From where in Washington are we most likely to get answers as we are seeking answers in terms of the impact of federal decisions on the county budget, county programs? From where have we been most successful in getting answers?”
“We don’t have answers at this point,” Lesher said. “Whatever we’re hearing, we’re updating the board as quickly as we can.”
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