Planned projects left with uncertainty as federal funding status fluctuates
Published on March 11, 2025 at 4:07pm EDT | Author: frazeevergas
0To the Editor,
In mid-February, the Trump administration froze funds appropriated by Congress, locking Minnesota out of $200 million in federal grants for community-based projects. Last week, some funds were released, but uncertainty is causing worry and strain for organizations relying on the funds.
In July 2024, the U.S. Environmental Protection Agency awarded a $200 million Climate Pollution Reduction Grant to the Minnesota Pollution Control Agency (MPCA) to implement community-driven environmental solutions. Minnesota planned to use its grant to support the Minnesota Climate-Smart Food Systems project, led by MPCA.
The project will fund a range of initiatives, including peatland restoration, energy efficiency, vehicle and equipment electrification, improved food security, and other programs that assist and support farmers.
The construction of a new food waste processing plant in Scott County, to be operated by Ramsey/Washington Recycling & Energy (R&E), is one such project depending on this funding. The plant will process 75,000 tons per year of organic and food waste, converting enough natural gas to serve thousands of homes and reducing carbon emissions.
If the freeze is reinstated, $10 million in funding for this $100 million project is now at risk. Without these funds, the cost responsibility will fall to R&E and the residents of both counties.
Additionally, $20 million is allocated for the Department of Agriculture to expand initiatives such as the Minnesota Agricultural Water Quality Certification and Soil Health Financial Assistance programs that support farmers adopting popular practices such as no-till. With planting season on the horizon, farmers need clarity on funding so they can make decisions about practices and prepare for spring.
The federal government must honor its commitments to projects across the state and country that are relying on these funds. Minnesotans should contact their congressional representatives and ask for federal contracts and obligations to be upheld.
Established in 1973, the Center for Rural Affairs is a private, nonprofit organization working to strengthen small businesses, family farms and ranches, and rural communities through action oriented programs addressing social, economic, and environmental issues.
Cora Hoffer
senior policy associate, Center for Rural Affairs