City leaders have renewed hope for federal funds for local projects in the 2026 congressional budget

An array of local projects that lost millions of dollars in federal funding in March may secure a second chance in the next congressional budget cycle.

That’s the word from the city’s intergovernmental relations office, which notified the mayor and City Council last week that the same funding requests, along with several new ones, will be resubmitted for the fiscal year 2026 appropriations bill. Austin’s U.S. Reps. Lloyd Doggett and Greg Casar are making the requests for a wide range of projects in their districts.

While the “continuing resolution” that Congress approved last month served to avoid a federal government shutdown, it also excluded all Congressional Community Project Funding, or earmarks, which for Austin meant the loss of nearly $10 million.

A 10-year moratorium on congressional earmarks was lifted in 2022. Since then, Austin has secured about $23.6 million in community project funding.

According to the city memo from Carrie Rogers, intergovernmental relations officer, congressional leadership said they will allow members to request earmarks as part of the 2026 appropriations process, and may consider previously submitted 2025 budget requests.

“The Congressional Project Funding resubmits and new submissions represent projects that are a critical need for the City of Austin and its residents,” a city spokesperson told the Austin Monitor. “We look forward to their consideration in the various Appropriations Committee subcommittees.”

The list of projects to be resubmitted for funding also includes several new requests for local projects, such as $2 million for an all-abilities playground at Onion Creek Park in Council District 2, $1.5 million for the Asian American Resource Center Pavilion in District 1, and solar and battery backup power for resilience hubs in Districts 4, 7 and 9.

Additionally, Doggett and Casar are each submitting new funding requests totaling nearly $4 million to go toward tree planting and workforce development efforts in Districts 1, 3, 4 and 7 to combat extreme heat in Austin’s hottest corridors.

Projects that lost earmarked funding this year may still see those dollars approved in the 2026 budget year. One of those is Foundation Communities’ redevelopment of the Mary Lee Foundation’s eight-acre campus on South Lamar.

Walter Moreau, executive director of Foundation Communities, said the two nonprofits are still fundraising to break ground on the first phase of development, featuring The Bloom, a seven-story building to provide affordable housing for over 100 residents. Completion of phase one is set for 2027. The redevelopment plan includes the renovation of some the campus’ existing buildings, the demolition of outdated buildings, and the construction of additional housing.

The project could secure $850,000 in federal dollars if approved in the 2026 appropriations bill. “We’re really grateful that Rep. Doggett cares about our project and has been willing to work with the city and us to put (the funding request) forward,” Moreau said.

Photo by Bjoertvedt – Own work, CC BY-SA 3.0, Link.

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