By Jesse Jones, The Paper. — Burqueños who rely on local housing, transit and community services could see programs lose federal funding if a proposed rule were to give political appointees new power to freeze or end grants over vague standards tied to federal policy.

Four Albuquerque City Councilors, led by Stephanie Telles and joined by Council President Klarissa Peña, Nichole Rogers and Tammy Fiebelkorn, are challenging a proposed rule from the Trump administration’s Office of Management and Budget that they say could give Washington broad authority to freeze city funding. The proposed rule would allow federal agencies to freeze or end grants based on vague standards such as “national interest” or “anti-American values,” shifting key decisions from career staff to political appointees. Councilors warned the cuts could affect Burqueños who rely on housing, transit and other community services while pressuring Albuquerque to change its sanctuary city and community trust policies or risk losing federal funding. The proposal comes weeks after the Trump administration acknowledged in court filings that it illegally canceled hundreds of millions of dollars in New Mexico energy program funding before agreeing to restore the money.

“Public trust is strengthened when federal regulations reinforce transparent, accountable and risk-informed governance, not when they replace objective standards with undefined discretion,” the councilors wrote.

According to the OMB’s regulatory impact analysis, the changes would address “oversight gaps” and protect the “responsible stewardship of taxpayer funds.” The analysis states that the reforms — such as ending fixed-amount subawards, or grants passed down to local non-profits, checking the Treasury Department’s Do Not Pay list and enforcing E-Verify — aim to boost transparency, curb improper payments and keep federal grants on track.


Jesse Jones is a reporter covering local government and news for The Paper. through a local journalism fellowship from NM Reports.

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