Pasadena City Council Defers Action on Federal Grant Agreements

At a special meeting on Monday, the City Council deferred an item that would have authorized the City Manager’s Office to execute federal grant agreements.

It is not known when the item will come back to the City Council.

The City manages approximately $60 million annually in federal grants supporting essential services such as transportation, public safety, housing, utilities, homelessness outreach, and public health programs.

New conditions tied to recent Presidential Executive Orders continue to raise questions about future funding eligibility.

In January, President Donald J. Trump issued an executive order directing federal agencies to temporarily halt all activities related to federal financial assistance programs, including grants, loans, and other forms of aid, to allow for a comprehensive review and realignment of spending priorities.

A federal judge later blocked the order.

City staff reviewed a recently transmitted $351,407 grant agreement from the U.S. Department of Housing and Urban Development to fund permanent supportive housing through the Continuum of Care Program.

This agreement would be the first to reflect new grant conditions stemming from more than 140 executive orders signed by President Donald Trump since taking office in January.

Although the agreement includes conditions that were not part of the original grant application, staff determined that the requirements are unrelated to the Continuum of Care’s core purpose of combating homelessness and that the City can comply with them.

The City remains committed to complying with all applicable laws and grant terms but acknowledged that some conditions may be subject to future legal challenges.

Other cities have already filed lawsuits contesting the legality of similar grant provisions and executive mandates.

Going forward, Pasadena plans to evaluate each new federal grant agreement on a case-by-case basis and will continue to comply with conditions unless they are determined to be unconstitutional or otherwise invalid.