Clean energy and transportation projects in Athens have been halted due to federal grants cuts under President Donald Trump, impacting economic growth, public safety and access to renewable energy sources.

“The sudden cancellation of federal grants not only had a significant impact on the ability to provide significant services to the community, but it also had a direct impact on funds and time invested by local governments,” Athens-Clarke County Sustainability Department Director Mike Wharton said.

The federal government paused almost $5 million in Project FAST (Fueling Athens’ Sustainable Transportation) funding for electric vehicle charging stations in February 2025 and pulled a $20 million Community Change Grant for a renewable energy microgrid at the Athens-Clarke County Unified Government Public Safety Campus around March 2025. The federal government also paused funding for the safety and operational improvement project at the intersection of Hawthorne Avenue and Oglethorpe Avenue.

Since taking office, the Trump administration has canceled or threatened to cancel billions of dollars of federal funding. In response, states, cities and nonprofits have filed more than 150 lawsuits against the administration, accusing the executive branch of unlawfully expanding its power. According to an Associated Press analysis, 66 of the 152 lawsuits resulted in court orders that blocked or temporarily blocked the administration’s attempts to cancel or decrease federal funding, as of early October.

Many state and local governments rely on federal grants to fund local projects and programs. In 2021, the federal government awarded $1.3 trillion in federal grants to state and local governments. According to the Georgia Budget and Policy Institute, around 33% of Georgia’s 2026 Fiscal Year Budget consists of federal grants, totaling $22.5 billion.

Project FAST

According to a document compiled and provided by Wharton, funding for the Fueling Athens’ Sustainable Transport program was halted when the $4,941,899 federal grant was abruptly “paused” in February 2025. ACCGov has yet to receive further information from the federal government regarding the grant’s status.

Project FAST aims to install electric vehicle charging stations throughout Athens, including public parks, the public library and the airport. The clean energy initiative would have increased the number of charging stations in Athens by more than 106%. According to the Sustainability Department, key benefits of Project Fast include economic growth, a decrease in air pollution and accessible charging sites for low-income residents.

ACCGov’s clean energy microgrid

The $20 million Community Change Grant was set to fund a clean energy microgrid that would provide reliable energy to the ACCGov Public Safety Campus on Lexington Road, which includes the ACCGov Police Headquarters, 911 Operations Center and the ACC Jail. However, according to Athens Mayor Kelly Girtz, the federal government pulled the grant.

“We were expecting to spend around $20 million on that project and that was completely put on hold so that funding source seemingly does not exist anymore,” Girtz said. “So it basically went from kind of being in the pipeline to the pipeline not even existing.”

According to Wharton, the renewable energy microgrid would result in “significant operational savings and enhanced operational efficiency.” The microgrid is capable of producing double the amount of solar photovoltaic energy than is currently being produced and would reduce total energy costs by 27%.

The Community Change Grant would also fund a public education campaign, raising awareness of sustainability and energy efficiency.

“Funding from this grant would provide 3 years of funding for a public education initiative that provides guidance to businesses and families as to how to reduce energy use, identify reputable contractors and contracts and make informed decisions regarding clean energy options,” Wharton said in the provided document.

Safety and improvement project at the Hawthorne corridor

According to Girtz, the federal government also withdrew funding for the safety and operational improvement project at the intersection of Hawthorne Avenue and Oglethorpe Avenue. A planning grant was provided, allowing local government officials to begin designing the project. However, the federal government pulled the implementation grant that would fund the construction of the project. ACC has proceeded with the design phase of the safety and improvement project and is awaiting implementation funding.

Girtz described the intersection of Hawthorne Avenue and Oglethorpe Avenue as one of the most congested and roadways in Athens, affirming that it is “not safe for walkers, it is not safe for cyclers, it is not safe for motorists.”

Girtz stated that the upgraded intersection might include a multi-use path for walkers and cyclists, an additional lane or a roundabout, allowing traffic to flow smoothly. Girtz spoke of the impacts of the project’s implementation halt.

“This is just going to mean that the safety and effectiveness upgrades that normally residents would have been able to expect to be coming might not be coming for a number of years,” Girtz said.

Economic impacts

Federal spending cuts within the clean energy sector may negatively impact Athens’ economy. According to Georgia State Representative Spencer Frye, federal funding cuts to clean energy initiatives leads to incomplete projects and people losing their jobs, leading to economic inefficiency.

“People stake their livelihoods on the solar industry. Manufacturers invested money into the states for solar energy. Jobs were created,” Frye said. “New jobs were being created and new training was going on because we need to develop a whole entire workforce for this and for the energy cuts to come down, that really does throw a monkey wrench in the economy.”

Losses from local investment

Federal funding cuts to clean energy have also led to monetary losses within ACCGov. Expertise, labor and time were heavily invested by the Sustainability Department to ensure proper application to various federal grants. According to Wharton, the Sustainability Department has invested upwards of $60,000 in local funds on grant writing services and 700 hours of personnel time to seek, write and apply for federal grants.

“Compared to the federal level, the above may seem to be insignificant but for local government, especially a department as small as sustainability, this was a substantial investment in the federal grant process,” Wharton said. “It has also involved the investment of time and support by local NGOs and community volunteers.”

Responses from government officials

Public officials have expressed concern over sudden federal grant cuts and have adopted a day-by-day approach when assessing future federal funding. Assistant Director of Housing and Community Development Alejandra Calva stated that her department is “relatively confident” that federally funded housing programs and grants, such as the Community Development Block Grant and the Home Investment Partnership, are safe from federal funding cuts. However, the Department of Housing and Community Development is cautious and watchful of potential funding cuts.

“We are taking it one day at a time. I think that is the best thing we can do at this point. You know, we are really focused on what is in our control right now and that is making sure that the funding we do have is spent appropriately,” Calva said.

Girtz spoke of the negative impacts of unreliable federal funding promises and criticized the unpredictable behavior of the Trump administration.

“Right now, the sand is so shifting underneath feet that there is uncertainty and that is just not healthy for the country,” Girtz said. “You want some sense of clarity about what programs are available and supports are available and what dollars are going to flow… So it is just this erratic nature of this administration that I think, from the perspective of a state or local government or a school district, is among its most disconcerting characteristics.”