City Council discusses potential revocation of federal funds

During the Tuesday, Aug. 12, Eden Prairie City Council meeting, Mayor Ron Case held up a copy of the Star Tribune to address a recent headline about federal funding.

“I thought it would be important for the residents of Eden Prairie to know: Is Eden Prairie at risk? Are we vulnerable to any cuts that may occur at the federal level?” Case said.

The Star Tribune article discussed concerns about the Trump administration reviewing $500 million in funding going to counties and municipalities. Congress already approved the funding being reviewed by the Trump administration.

Case asked City Manager Rick Getschow for insight into what residents can expect. 

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Getschow said most of the city’s funding comes from its own sources, like taxes, for city operations. The city does receive some federal and state funding that does not impact regular city operations. 

Eden Prairie received federal funding through Community Development Block Grant (CDBG) from the U.S. Department of Housing and Urban Development to support housing initiatives and loans. About $330,000 could be at risk, but the city anticipates it will still receive the funding in the next fiscal year.

The city’s total budget is about $140 million, Getschow said, so this is a small percentage of the city’s funding. 

Though the CDBG funds are at risk of being pulled by the federal government, Getschow said there is another form of funding with a dedicated statewide sales tax used for affordable housing efforts. This could help fill the gaps if the city loses federal funding. 

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Case said the sales tax is at the state level and was not something the City Council voted on. The funds are divided throughout the state and Eden Prairie receives its share.

Starting in 2023, Minnesota enacted a 0.25% sales tax to support affordable housing in the Twin Cities metro. 

Grant funding from the federal government is also up in the air, Getschow said. The city received tax credits and grants for solar panels and electric vehicle charging stations, which are the kinds of grants at risk of being taken away. 

The city anticipates getting at least some of the reimbursements for its projects, Getschow said. 

Getschow also noted that the Star Tribune article is not necessarily talking about grant funding and mainly alludes to the CDBG funds.

“That’s a very, very small percentage of our funding,” Getschow said. “We still hope to receive that funding, and we have backup plans in case that occurs.”