SIOUX FALLS, S.D. (KELO) — The next phase of Veterans Parkway construction will be using federal money that President Donald Trump had ordered to be frozen by late Tuesday afternoon, Sioux Falls Finance Director Shawn Pritchett said at a Tuesday city council budget meeting.
During discussion on the budget and Trump’s plan, a federal judge temporarily blocked the plan minutes before it was to go into effect, according to The Hill. The order blocks the plan until at least 5 p.m. Monday, according to The Hill.
Pritchett said about $13 million in federal money is planned for the new intersection at Arrowhead Parkway and Veterans Parkway. Construction is expected to begin in the spring of 2025 and continue through 2026. The city should be getting bids soon.
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Trump’s executive order was to be effective Tuesday afternoon and it has caused some confusion as to what it applies to.
“I feel confident the funds will return…,” Pritchett said of the planned roughly $13 million and other federal money.
City council member Curt Soehl was more worried.
I’m hugely concerned about the money we get from the federal government,” Soehl said. He said the council and city staff needs to be cautious to budget for things that could be considered in “limbo” during the President’s freeze on federal money.
Pritchett said the city will continue to monitor the federal money freeze situation but action may be needed in 90 days.
Overall, the city’s use of federal funds in a city budget of about $800 million is “fairly small,” Pritchett said.
The city receives about $4.8 million for transit, between $300,000 and $400,000 for capital projects, about $1.5 to $2 million for housing and $5.3 million for health programs, Pritchett said.
The city was award $3 million in a forest grant that is a new award, Pritchett said. “Currently through 2024, for health and transit (the federal money) are drawn down,” he said.
The freeze can also impact the health care organizations of Sanford and Avera. Some analysts have said it would freeze Medicaid which is insurance used for health care.
KELOLAND contacted these two organizations for a response to the freeze. Both organizations responded with statements that said they were monitoring the situation and trying to learn more.
“Avera is closely monitoring the recent executive order pausing specific grant, loan and federal financial assistance programs,” the statement from Avera said. “Our health system is determining both the short term and potential long term impacts relative to this pause, but do not anticipate any immediate disruption to our patient care or grant funded program operations. We are hopeful this pause is temporary and short-lived.”
“Given the recent announcement, we are working closely with our elected officials in Washington to learn more about potential impacts,” Sanford said in a statement. “We remain focused on providing the best possible care for our patients and our communities.”
U.S. District Judge Loren AliKhan said on Tuesday she was granting a “brief administrative stay” that preserves federal disbursements at least until Monday at 5 p.m. EST after a group of nonprofit and public health organizations filed a lawsuit, The Hill reported.
