Letter: Climate Mayors, C40, and USDN Urge President Biden and Director of the Office of Management and Budget, Shalanda Young, on Fiscal Year 2026 Agency Budget Appropriations Priorities
August 20, 2024
Dear President Biden and Director Shalanda Young:
Local governments are committed to proactively preparing for climate change that avoid and minimize its negative impacts, to rebuilding stronger and better when disasters strike, to mitigating structural inequities, to slashing greenhouse gas emissions, and to building opportunities for Americans to thrive and reach their full potential. These goals require targeted investments in American cities to build out our nation’s sustainable infrastructure, to create well-paying “high road” jobs, and to support a resilient, clean energy future.
As members of Climate Mayors, a bipartisan network of over 350 mayors committed to climate action, the Urban Sustainability Directors Network (USDN), a coalition of local government sustainability leaders representing more than 320 communities in the US and Canada, and C40 Cities, a global network of nearly 100 of the world’s leading cities, we are writing to share our FY26 appropriations priorities for climate and clean energy programs. On behalf of these national organizations that represent mayors and sustainability offices that are leading on climate action and sustainability, we respectfully ask for your support in making federal funding more accessible for cities that are often capacity and resource constrained. Additionally, we recognize the federal government's budgetary constraints due to the Fiscal Responsibility Act (debt ceiling bill) and hope you consider these requests from our organizations. Local governments play a pivotal role in climate action and the federal government has a crucial role in supporting local governments in their place-based actions to achieve climate resilience. We ask that you review this paper, developed by C40 Cities, Climate Mayors and USDN to illustrate the roles that cities will play in implementing IRA and BIL, identify the tools and resources local governments need to deploy federal climate funds most efficiently and effectively, and recommend what federal agencies, state governments, funders, and climate advocates can do to help.
Remove Barriers to Help Local Governments Confront the Climate Crisis
In the face of frequent and immediate climate emergencies, local governments need funding and support to simultaneously cut greenhouse gas emissions, confront climate hazards, and address long-standing and intersecting issues related to equity, health, and economic opportunity. Thanks to the American Rescue Plan Act (ARPA), Infrastructure Investment and Jobs Act (IIJA), and Inflation Reduction Act (IRA), historic levels of funding are available for climate action; however, barriers remain for cities that are due to or exacerbated by the design of federal funding programs. We urge the federal government to adopt the following principles, which centers local climate action, and we urge the uptake of these specific recommendations related to individual program areas, to ensure that spending supports, and does not hinder, confronting the climate emergency.
Principles for Federal Support of Local Climate Action
Local governments are ready to meet this moment and build an economy that is inclusive, robust, and sustainable. Therefore, we urge federal agencies to adopt the follow principles to support local climate action:
Prioritize and expand programs where funding flows directly to local governments from the federal government.
Provide clear guidance to states on how to effectively engage local and tribal governments and community organizations in the award of state formula funding, to improve inclusivity and accountability.
Ensure that federal programs and funding (including IRA rebates and tax credits) reach disadvantaged communities and allow sufficient administrative and implementation flexibility to meet their needs, including pre-award flexibility to allow for the use of state and local data that is more up-to-date and in tune with community needs..
Simplify the process, remove administrative hurdles, and provide accessible funding and technical assistance to local and tribal governments and community organizations to ensure they can participate in funding opportunities, including budget allowances for pre-proposal costs for more programs, building on the recently announced and welcome changes to the Uniform Grants Guidance.
Provide technical assistance and other resources for post-award grants management that builds capacity within local governments and provides confidence in the ability to handle additional awards if received.
Ensure that federal spending is accompanied by workforce standards and funding for workforce development that prioritizes job quality and equitable access to well-paying high road careers.
Summary of the FY2026 Budgetary Requests
In addition to the federal government adopting the above principles for federal support of climate action, our organizations recommend the following budgetary requests for the following priority federal programs.
Building Decarbonization
U.S. Department of Energy (DOE) - Energy Efficiency and Conservation Block Grant (EECBG) Program
Increase funding for EECBG to $3.1 billion and broaden the scope and definitions within EECBG.
Fund the EECBG program annually.
U.S. Department of Housing and Urban Development (HUD) - Green and Resilient Retrofit Program (GRRP)
Renew this direct loan and grant program at $1 billion as initially authorized by the IRA.
Climate Resilience & Hazard Mitigation
Federal Emergency Management Agency (FEMA) Building Resilient Infrastructure and Communities (BRIC) Program
Increase BRIC program funding to $2 billion.
Require FEMA to brief on its current and planned strategies to help state, local, tribal and territorial governments effectively leverage the BRIC program.
Set aside funding to provide technical assistance to communities in the development of building codes, or, where local governments do not have jurisdiction over the building code, other strategies to decarbonize and improve the resilience of buildings.
Allow funding to flow directly to local governments.
Update the program to include heat waves as one of the natural hazards projects can address.
Maintain a streamlined benefit-cost analysis process in competitions where such data is required.
Community-Centered Transportation
U.S.Department of Transportation (DOT) Reconnecting Communities Pilot Program (RCP)
Fund the program at $205 million in FY26 including funding for out-years of current grants and new funding for additional grants.
Renew this grant program at $1 billion annually as initially funded in FY22.
Sustainability Workforce Development
U.S. Department of Energy, U.S. Department of Transportation, U.S. Environmental Protection Agency
Provide additional funding for clean energy, transportation, and green infrastructure projects built with high road labor standards, and additional funding for projects built with domestic content standards.
Provide $500 million to help cities formalize community workforce agreements (CWAs) including support for CWA capacity building (training and technical assistance).
Building Decarbonization
Local governments are uniquely positioned to implement building decarbonization. Building decarbonization is a critical pathway for local governments to reduce greenhouse gas emissions, lower energy costs, and provide healthier, more comfortable homes and places of work. We very much appreciate the increased emphasis on energy efficiency programs in the IIJA and the IRA, and we request that you include increases in the following programs.
U.S. Department of Energy
Energy Efficiency and Conservation Block Grant (EECBG) Program - $3.1 billion
The Energy Efficiency and Conservation Block Grant (EECBG) Program represents the largest nationwide direct, equitable investments in energy efficiency and renewable energy technologies at the local level in U.S. history. The legacy of the EECBG program provides local communities with consistent funding resources that will increase renewable energy capacity, technical knowledge, and deployment of energy efficiency projects at the local level.
EECBG is one of the most important programs for local sustainability offices, because it is flexible and much of the funding is given directly to local governments. The program empowers local governments to make decisive actions in their communities that reduce greenhouse gas emissions, reduce total energy use and costs, and spur economic growth with the creation and retention of jobs. Communities are able to use EECBG to directly implement their own energy and conservation goals and Climate Action Plans. The continued investments in the EECBG program will rapidly increase local government's capabilities to meet national carbon emission reduction goals while also improving local economies.
Therefore, we ask that you increase funding for EECBG to the ARRA-era funding level of $3.1 billion. We also ask to broaden the scope and definitions within EECBG to allow funding for:
community-based project development and implementation;
water efficiency;,
energy efficiency in building retrofit programs;
decarbonization of transit modes and buildings through electrification;
seed money for finance programs;
training and support services related to jobs;
an oversight mechanism that ensures rapid and equitable distribution of funds; and
the incorporation of labor and community standards for projects.
Finally, we urge you to recommend that the EECBG funding receive annual, permanent appropriations and additional funding for staff at DOE to implement the program. The predictability of funding enables cities to build capacity and plan for future investments and sustained programs.
U.S. Department of Housing and Urban Development
Green and Resilient Retrofit Program (GRRP) - $1 billion
The Green and Resilient Retrofit Program provides grants or loans to landlords of HUD assisted properties serving very low-income families, seniors, and persons with disabilities. Projects can measure energy usage and efficiency, reduce energy use, improve energy and water efficiency, enhance indoor air quality, implement zero-emission strategies, and address climate resilience. This funding is essential to communities as it prepares and protects the most vulnerable residents and properties by reducing their exposure to hazards and by protecting life, livability, and property when disaster strikes. Therefore, we request that this program be renewed at $1 billion as initially authorized by the IRA.
Climate Resilience & Hazard Mitigation
In the face of frequent climate emergencies, local governments need continuous funding to proactively improve community resilience alongside the intermittent funding that comes following a disaster. There is disproportionately more federal funding available for disaster recovery than hazard mitigation, and the funding that is available for recovery is difficult to access and comes with procedural delays and obstacles. Therefore, we recommend additional funding and policy consideration for the Building Resilient Infrastructure and Communities Program.
Federal Emergency Management Agency
Building Resilient Infrastructure and Communities (BRIC) Program - $2 billion
The national significance of the Federal Emergency Management Agency (FEMA) Building Resilient Infrastructure and Communities (BRIC) Program lies in its ability to support states, local governments, tribes and territories across the country as they undertake hazard mitigation projects, reducing the risks they face from disasters and natural hazards.
For the FY 2023 competition, the program received 1,234 sub-applications from every state, 5 territories, and 35 tribes, requesting $5.66 billion in federal cost share funding. However, it was only able to fund 656 projects. We are thankful for these resources and the $1 billion authorized in the IIJA for FY2023. However, as with other grant programs relevant to sustainability, we also know that the program is consistently oversubscribed.
We request that the BRIC program be funded at $2 billion in FY2026, as included in the FY 2025 Appropriations Committee budget and the Homeland Security Appropriations Bill. We also request that additional funds be set aside as part of BRIC (or in conjunction with the U.S. Department of Energy’s Building Energy Codes Program) to assist communities in the development of building codes or, where local governments do not have jurisdiction over the building code, other strategies to decarbonize and improve the resilience of buildings and other community assets.
Finally, eligible direct applicants for BRIC funding include States, the District of Columbia, U.S. Territories, and Federally Recognized Tribal Governments. This process, while encouraging coordination within a State, also delays the distribution of funding to local communities and poses additional hurdles. We urge you to allow direct funding to local governments with a requirement that they coordinate with and get approval from the State Hazard Mitigation Officer on their projects.
Community-Centered Transportation
Local governments play a crucial role in shaping sustainable transportation systems that benefit their residents and the environment. Federal investments in community-centered transportation and clean mobility initiatives allow local governments to create comprehensive public transit networks, expand cycling and pedestrian infrastructure, reduce traffic congestion, improve air quality, enhance accessibility for all residents, and significantly lower greenhouse gas emissions. Ultimately, federal investment in local community centered transportation is vital for creating livable, sustainable urban environments that support both human well-being and environmental goals. Therefore, we suggest additional funding for the Reconnecting Communities Pilot Program.
U.S. Department of Transportation
Reconnecting Communities Pilot Program (RCP) - $1 billion
Federal highway policy in the mid-20th century allowed for the construction of highways where land costs were the lowest or where political resistance was weakest, often cutting through low-income and minority communities. Community members that remained have continued to deal with the impacts of highways, creating a physical barrier to
opportunity and other negative impacts. The DOT Reconnecting Communities Program helps reverse these harmful policies by advancing community-centered transportation connection projects that improve access to daily needs such as jobs, education, healthcare, food, nature, and recreation, and fostering equitable development and restoration. Therefore, we request that this program be funded at $205 million in FY26 to accommodate both ongoing grants in progress and new awards. We also recommend that this program be renewed at $1 billion as initially funded in FY22.
Sustainability Workforce Development
There are not enough contractors and workers available to meet the true need of building retrofits, construction, and clean energy installation to meet local climate goals. Current workforce development programs do not have sufficient scale for the training and reskilling necessary. We recommend that more opportunities be added for low-income and communities of color to benefit from the sustainability job boom and to access high-road, family-sustaining jobs that serve their communities. This is key to meeting just transition goals.
Labor Standards
High road labor standards sit at the intersection of worker rights, social justice, and environmentalism – and they offer a platform to build coalitions that can collectively pursue climate and equity goals with a more inclusive perspective. These standards include family-sustaining wages (i.e., prevailing wages for construction occupations, wage floors for other occupations), employer-provided benefits, career pathways, and safe and healthy working conditions. We request that you provide additional funding for clean energy, transportation, and green infrastructure projects built
with high road labor standards, and additional funding for projects built with domestic content standards through the following programs:
DOT On the Job Training Program,
DOT Public Transportation Technical Assistance and Workforce Development Program,
DOE Advancing Equity Through Workforce Partnerships,
U.S. Environmental Protection Agency (EPA) EPA Brownfields Grant Program, and
EPA Innovative Water Infrastructure Workforce Development Grant Program.
We ask that at least $500 million should be provided through the above mentioned programs to help local governments formalize community workforce agreements (CWAs) between government, labor, and community stakeholders, including support for CWA capacity building (training and technical assistance), facilitated convenings, negotiations and collaborative oversight for such agreements, as well as support for aligning the workforce ecosystem around high road standards.
International Climate Financing
In addition to financing solutions to combat the climate crisis at home, the U.S. has a moral responsibility as a major contributor to climate change to lessen the burden it has passed on to countries who’ve done the least to cause the problem. Many low-and middle-income countries experience greater harm than do rich countries, but they have less wealth with which to repair the damage. Rich countries pledged to provide $100 billion a year by 2020. The US share of this, based on its past emissions, would be $40 billion. The US must, at a minimum, deliver on its commitment to provide climate financing of $11.4 billion per year to the developing world while mainstreaming consideration of climate change across all foreign aid funding. This level of climate finance would not only signal the commitment of the US government to addressing the global climate crisis, but would also spur the growth of green investment and business opportunities for US firms.
Conclusion
We appreciate your urgent consideration of the priorities noted above. Should you be interested in additional priorities and needs of local government needs related to climate and sustainability, please consider C40, Climate Mayors, and USDN as resources and call on us if you need information in this space. Should you have questions, please contact Cynthia McCoy, Urban Sustainability Directors Network Director of Federal Engagement at cynthiamccoy@usdn.org; Kate Johnson, C40 Director of Federal Affairs at kjohnson@c40.org; and Meghan Pazik, Policy Director at Climate Mayors, meghan@climate-mayors.org. .
Sincerely,
Kate Johnson, Interim Regional Director for North America, C40 Cities
Cynthia McCoy, Federal Engagement Director, Urban Sustainability Directors Network
Kate Wright, Executive Director of Climate Mayors