The City of Olympia is bracing for potential federal funding cuts that could impact up to $11.9 million in public works projects due to its sanctuary status.
At a city council study session on Tuesday, May 13, City Manager Jay Burney warned of the potential effects of President Donald Trump's executive order threatening to withhold federal funding for sanctuary cities.
"I learned that the state of Washington signed on to help fight that order with other states," Burney said.
Of significance is funding for current and future public work projects, which is about $11.9 million for projects this year and next year.
Burney expressed his concerns about the stability of that funding, particularly on the Fones Road project, which includes $9.5 million in federal funding. It is the city's largest transportation project to date.
Mayor Dontae Payne noted the project is underway and asked what the city's alternative plan would be if the federal funding is lost.
According to Public Works Director Mark Russell, the city can still complete the Fones Road project using local funds, but at a significant cost.
He said the city would prioritize completing the project using reserves from the Transportation Benefit District (TBD), real estate excise tax dollars and impact fees. However, doing so would deplete funding reserves and delay all other transportation projects for an estimated two to four years.
Russell noted while $3 million of the project supports pedestrian and bicycle improvements, the city would exhaust general transportation funds before seeking to use the voter-approved set-aside money under a "special circumstance" clause.
Council members Clark Gilman and Dani Madrone confirmedthe council's prior agreement allowed flexibility to reallocate active transportation funds in special circumstances, such as a loss of federal support.
Madrone also said that the $3 million allocated to pedestrian and bicycle improvements in the Fones Road project comes from the voter-approved utility tax, not the TBD sales tax.
Russell stressed that stopping the Fones Road project mid-construction is not an option due to existing contractual obligations with vendors and contractors. The project will continue through the 2026 construction season.
Another area of concern is the Ground Emergency Medical Transport (GEMT) funding in the city's Basic Life Support (BLS) program. GEMT is a federal program for reimbursing the cost of transports for Medicare and Medicaid recipients.
Olympia Fire Department Chief Matt Morris warned of potential disruptions to local emergency medical services, as federal health care funding hangs in the balance.
Morris said more than 60% of the city's ambulance billing is tied to Medicaid and Medicare. While the GEMT reimbursement program remains intact, any reductions in federal health care funding could undermine the city's ability to recover costs.
Burney also mentioned city staff is monitoring several federally funded projects for potential impacts. That includes a solar grant for the Olympia Armory, a $347,000 Community Development Block Grant (CDBG) allocation that supports local nonprofits, and $160,000 in already-obligated CDBG funds.
"If you think about clawbacks, there are impacts there for dollars that are not spent yet. We are paying attention to that," Burney said.
"We have not been provided anything yet — nothing in writing — that our funding is being withheld, but I thought I would provide that information to raise awareness in the community that there definitely are some impacts we might have to work through," he added.
Olympia first declared the city a "City of Peace in 1985, offering a sanctuary to people fleeing political persecution.
In 2016, amid rising fears over federal immigration policies, the city council reaffirmed this commitment by declaring Olympia a sanctuary city, pledging to serve and protect all residents, regardless of immigration status.
On April 28, President Trump signed an executive order to enforce federal immigration laws by targeting sanctuary jurisdictions.
The order directs the Attorney General and Secretary of Homeland Security to identify and notify noncompliant areas and issue a warning that they may lose federal funding. It also calls for legal action to ensure compliance and address local laws that prioritize undocumented immigrants.
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Finally, thoughtless feelgoodism is extracting a price.
Wednesday, May 14 Report this
JW
The political grandstanding chickens of these buffoons might be coming on home. I for one am interested in seeing what the ceiling is on the amount of money they're willing to lose over this.
Wednesday, May 14 Report this
PCBigLife
I’m glad that our community has taken a stand against the bigotry and blatant lies about people trying to find a better life in this country and escape some of the horrible and genuine oppression that occurs in other countries. I am particularly proud to live in a state with a progressive government that is actively fighting the current administration on their attempt to control free speech, circumvent congress who has authorized these funds, ignore the courts, and eliminate legal due process.
Wednesday, May 14 Report this
Bobwubbena
It is not all "fun and roses" or "next they came for me, and no one was there to help me". It is time to fully understand that the cost of action--"cost to you and my family" and those other taxpayers may not pick up the cost that I subscribed to. Let's get real and understand what it costs to be "right" vs what a shared response and cost might be. We have it good in Washington, and it makes it easier to "pontificate". How many of you are giving 10% of your gross income to support the community programs that support the "needy". How many of you do NOT take advantage of the government give away programs designed for those that are truly needed. A Sanctuary City declaration means nothing if you don't pick up the full cost of those that use it. You are just making a statement and passing on the cost to your neighbors. Shame on you.
Wednesday, May 14 Report this
ddttwo2
Perhaps you should rethink your stand on being a sanctuary city & state...you can be as blue as you want when it's your own dime. When it effects everyone & not all of us agree with the sanctuary State/City status but we put up with it. Now it gets real!!
Wednesday, May 14 Report this
HappyOlympian
Giving into the feds could result in lost votes for incumbents, appearances everything here. Obvious where this is going to go, got a feeling I and fellow Olympians, am going to pay for this in many ways. Boooooooo
Thursday, May 15 Report this
JulesJames
The choice between filling the local pot holes and giving criminals cover to avoid federal law. Olympia is not an embassy. The "Sanctuary City" bluff has been called. Fold. Its a losing hand.
Thursday, May 15 Report this
OlyBlues
Woke city officials will have to decide what is more important, city taxpayers who are citizens of this country or illegals. If supporting and shielding illegals is more important than receiving tens of millions of dollars in Federal tax dollars for needed transportation projects then they should be very proud of their decision and roads and infrastructure will crumble. Extreme liberalism is costly, unfortunately city residents and visitors will end up paying the price.
Thursday, May 15 Report this
Snevets
Well at least we know who the Trumpers are, who voted for an Authotarian state.
Do us a favor and move to one of the nearby red states where you won't have to ***** about or put up with anything.
Thursday, May 15 Report this
Southsoundguy
Snevets, at least we know who the psychos that would rather aid illegals than take care of their own are. It’s funny that you think you have so much support just because a bunch of legacy boomers are entrenched in the voting system around here. Maybe you’re the one who needs to move. Keep running your mouth, though.
Thursday, May 15 Report this
MrCommonSense
Why being a "sanctuary city" and federal funding for roads are in any way related is a mystery to everyone except an authoritarian leader who will never stop in his relentless retribution circus.
We pay taxes to the federal government and, in return, approved funds for projects should be returned proportionally across all states, counties and cities that have qualified for them.
For those with a short memory, Nebraska's FEMA request for emergency aid was approved for flooding while Washington's FEMA request for emergency aid for damage due to the bomb cyclone was denied even though both requests met the requirements for aid.
The list of other retributions by this administration would require a list longer than Santa's. When they come for you after simply expressing an opinion, maybe there will be an awakening. Should we wait until our right to free speech is gone?
Thursday, May 15 Report this
Southsoundguy
The retribution against leftism will continue until it is destroyed.
Thursday, May 15 Report this
Boatyarddog
Hey B. Wubbena, how about mentioning the Lack of safety and support YOU as A Marina Owner Didn't Give to Paying Customers while you watched as they Got hurt, used and abused others, did Drugs, got sexually Assulted, ect. Now you give stearn "Advice" as a community member? HORSEHOCKEY, as well your POCAC participation reeks of Conservative Malarky. We know what and who you align with. Go look for your Political career somewhere else... your NOT going to make that career in Olympia.
Thursday, May 15 Report this
Boatyarddog
And SS POTATOHEAD you know where you can go. We here in Olympia LIKE our Progressive Causes, because We Understand the importance of Giving to the Whole community.... without judgment!
Thursday, May 15 Report this
Info2Consider
Serve our Nations Citizens... not ILLEGAL Immigrants or Woke Ideologies. Stop betraying Americans and our Constitution.
Thursday, May 15 Report this
Shawnjenkins
Fobes road project.... A renovation of a side street that is no longer than a quarter mile... That had a bottling distribution center, home Depot and a source of major retail crimes since 2000 or so...... That street, though highly traveled at 8ish am and 5 ish pm .. is dead all other times usually isn't to bothersome but the print is .... That is millions of dollars....... Not the more congested highly traveled at all times downtown area and is spoken of before crisus response services... . And Olympia is sanctuary to who.. ... fentanyl addicts....... And those criminal minded over civic .........I'm being persecuted... By another state without jurisdiction or within law of either state.... . But no help there ...... Sanctuary City my ass and priorities are bought and paid for by someone
Thursday, May 15 Report this
Esther
It’s sad to see how the tactics of divide and conquer are being used by the current administration to sow hatred and confusion so that neighbors are turning on each other rather than on the powers that be who are profiting from our local squabbles. While the feds illegally withhold funds already earmarked by Congress to support normal government functions, , they are awarding themselves huge tax cuts and further bloating the military budget beyond what the Pentagon asked for. The corruption is so out in the open, and yet neighbors prefer to blame “illegals” who give more to our economy than take, than the rich who benefit from the disunity and hatred they spread. Why not complain about the tax policies that make you pay more for goods and deny you basic governmental services? Why beat on those who already are downtrodden? It’s all a ruse to protect the rich from a unified and principled populace who would stand United for basic civil rights and decency. I’m glad our local government is not caving to these illegal, unprincipled and immoral tactics.
Thursday, May 15 Report this
MrCommonSense
ESTHER - Thank you for your thoughtful comments. It would be wonderful if those commenting would follow your lead. We need more civil discourse and folks who can offer their ideas for positive solutions to our many issues. Thanks Again!
Friday, May 16 Report this