Grant Gader, fiscal analyst for North Dakota Legislative Council, speaks during a committee meeting on June 26, 2025. (Michael Achterling/North Dakota Monitor)
By: Michael Achterling and Amy Dalrymple
BISMARCK, N.D. (North Dakota Monitor) – At least $100 million in federal grants have been canceled for North Dakota state agencies under the Trump administration so far, according to an analysis presented Thursday to state legislative leaders.
The analysis may not be a complete picture of the state impact, but it’s the first time such a list has been compiled since the Department of Government Efficiency began cutting costs.
“It is constantly changing and no guarantee that it is comprehensive,” Grant Gader, fiscal analyst for Legislative Council, said during a meeting of the Legislative Management Committee.
The state Department of Health and Human Services has seen the bulk of the federal funding cuts with 12 grants that were canceled in March.
The agency lost about $69.5 million from the Centers for Disease Control and Prevention that was awarded for the prevention and control of emerging infectious diseases, vaccines for children and grants to address COVID-19 health disparities for underserved populations.
Another $6.3 million in grants to address mental health and substance abuse also was canceled.
Those funding cuts have affected public health agencies and other organizations statewide.
The next largest cut was the loss of about $20 million in Federal Emergency Management Agency grants that were designated for various North Dakota infrastructure projects. Lawmakers during the session approved a Bank of North Dakota loan of about $9.7 million to fund wastewater projects in two communities after the grants were canceled.
The analysis, which Gader said comes from federal sources, shows about $8 million has been canceled for various state agencies as of this month, including:
- $4.5 million to the state for digital equity planning and capacity
- $2 million for the University of North Dakota for a school safety grant
- $990,000 for the Department of Environmental Quality for radon awareness, testing and mitigation to reduce radon impacts to low-income homes
- $580,000 to the Department of Agriculture for local food purchase agreements
- $105,000 National Institute of Health grant to UND for an undergraduate training initiative
Gader said his analysis does not include federal grants awarded directly to local agencies.
Also this week, the Budget Section of the Legislature approved spending nearly $190,000 in contingency funds to cover an education-related grant that was no longer available after the funds had been spent.
The dollars were part of Governor’s Emergency Education Relief funding authorized by Congress through the COVID-19 stimulus package. It supported initiatives such as the North Dakota Commission on Juvenile Justice and the Teacher Retention and Recruitment Task Force.
The deadline to spend the funds was extended through March, but the state was notified in March that the funds were not available, said Joe Morrissette, director of the Office of Management and Budget.
“We’re somewhat of a victim here of the federal Department of Government Efficiency efforts,” he said.
Morrissette told lawmakers Thursday that staff tried repeatedly to get in touch with the U.S. Department of Education to inquire about the grant, but they usually received responses that the employee no longer worked at the department.
“So, we have not gotten any resolution from the feds on this and as we get close to the end of the biennium now, we’re a little bit stuck in how we handle this,” Morrissette said.
Lawmakers on Thursday asked the Office of Management and Budget to also start tracking federal funding cuts. There’s a possibility lawmakers could reconvene in a special session to consider state funding to replace lost federal dollars.
“We’re going to need a big picture,” said Senate Minority Leader Kathy Hogan, D-Fargo.
Hogan also asked legislative staff to research more details about the impact of the funding cuts.
“If you cut $75 million, somebody’s going to be impacted by that,” Hogan said. “And I don’t think we know exactly who that is yet.”
Lawmakers also are preparing for a state impact from the “big, beautiful bill” under consideration in Congress.
North Dakota could lose about $1.4 billion in federal Medicaid funding over 10 years, if the U.S. House version of the legislation is signed into law, according to a Legislative Council memo presented Thursday. Medicaid enrollment in North Dakota would be reduced by an estimated 18% by 2034, with some of the reduction attributed to mandatory work requirements.
The memo analyzed reports issued on the bill by the Congressional Budget Office and the Kaiser Family Foundation. The analysis does not take into account changes to the bill as it’s being debated in the Senate.
The bill as approved by the House also would force states to contribute to a cost-sharing formula for the Supplemental Nutrition Assistance Program beginning in 2028. Under current law, the federal government pays the benefits for the program and states only cover the program’s administrative costs.
The North Dakota impact of that legislation is unclear as the details are still being debated. Legislative Council projects that the state would have to pay an additional $18 million every two years to administer the program. However, that doesn’t take into account changes to the program that may require additional staff to implement.
Donna Aukland, chief financial officer for the state Department of Health and Human Services, told lawmakers the agency may have to hire additional people or delay other work to accommodate the new eligibility requirements for federal programs.
Lawmakers saved six legislative days of the 80-day limit in case they need to reconvene to address impacts of federal funding cuts.
“This is something we need to keep our eye on,” Senate Majority Leader David Hogue, R-Minot, said. “I suspect when the final ‘big, beautiful bill’ project emerges, there will be more updates.”
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