Redwood City Joins Legal Action to Protect Millions in Federal Funding

Redwood City, California - The City of Redwood City today announced it has joined other local governments in a lawsuit challenging new federal restrictions on congressionally authorized grant funding.

The legal action, originally filed by the City of Fresno and other jurisdictions, seeks to protect $25.3 million in grant funding allocated to Redwood City. The lawsuit names the U.S. Department of Housing and Urban Development (HUD), U.S. Department of Transportation (DOT), and U.S. Environmental Protection Agency (EPA) as defendants.

Federal agencies, acting on recent Executive Orders, have imposed vague and unauthorized conditions on local governments seeking grant funding. As an example, HUD has directed cities to remove the term "equity" from grant documentation, stating it is inconsistent with Executive Orders. The lawsuit argues that these conditions are unlawful and have created significant delays and uncertainty in local agencies' budgeting and long-term planning processes.

Some examples of programs and projects immediately at risk include:

• Community development programs and grants to local community-based organizations providing safety net services
• Hoover Park improvements where safety incidents have significantly impacted the adjacent elementary school and community
• Bay Road Complete Streets improvements to enhance pedestrian safety near schools
• 1304 Middlefield affordable housing project, supporting construction of 94 affordable housing units
• Citywide stormwater infrastructure improvements
• Bridge Parkway project in Redwood Shores
• Homeless shelter operations serving approximately 180 residents experiencing homelessness

"This lawsuit is about fairness - about protecting the resources that have already been committed by the Federal Government," said Mayor Elmer Martínez Saballos. "Redwood City is dedicated to protecting the essential services our most vulnerable residents depend on, and the vital infrastructure improvements that benefit all of our residents. Joining this multi-jurisdictional effort is the most fiscally responsible approach to defend these critical funds paid by Redwood City taxpayers, and ensure they are invested back into our community."

Redwood City serves a diverse population of 82,423 residents. Forty-one percent of households are lower income, with 75% of these households spending more than 30% of their income on housing. The January 2024 count identified 189 individuals experiencing homelessness within city limits. Nearly half of Redwood City residents speak a language other than English at home and almost one third were born outside of the United States. Federal funds ensure Redwood City can continue delivering on housing, safety, and infrastructure priorities that directly impact residents' quality of life.

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