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PROPOSED RESOLUTION
CREATION OF A FEDERAL GRANT RISK MITIGATION FUND
WHEREAS, Cook County (the “County”) relies on federal grant funding to support critical public programs, which include but are not limited to programs providing services related to public health and safety, community development, affordable housing, immigration, environmental protection, and equity initiatives; and
WHEREAS, on January 20, 2025, the Federal Government issued Executive Order 14160, directing the termination of diversity, equity and inclusion (“DEI”) programs across federal agencies, requiring federal grant recipients to certify that they do not operate DEI initiatives that purportedly violate federal anti-discrimination laws; and
WHEREAS, Executive Order 14160 and other related orders, including Executive Orders 14147, 14148 and 14158, threaten to suspend, revoke or condition federal grant funding based on local compliance with new ideological and political mandates, particularly those targeting sanctuary policies, environmental justice related programs, equity-related programming, and local employment practices; and
WHEREAS, in addition to issuing various executive orders and actions which threaten the County’s federal grant funding, on February 6, 2025, the United States Department of Justice filed a lawsuit against the County (and the State of Illinois and City of Chicago) regarding its “sanctuary policies”; and
WHEREAS, the enforcement of such executive orders and actions and the filing of such lawsuit places the County at risk of losing or being denied access to essential federal grant funds based not on public need but on ideological grounds inconsistent with home-rule governance and community values; and
WHEREAS, the uncertainty surrounding federal grant funding awarded to the County creates financial risk to the County’s budget and poses an immediate threat to the provision of critical services/programs to Cook County residents and Cook County personnel; and
WHEREAS, through August of 2025, the County had $264.4 million in federal grant funds available that support approximately 360 full-time equivalent (FTE) positions across the County;
WHEREAS, the average recurringannual cost of federally funded grants is approximately $73.2 million and approximately $64.2 million of such federal funds have been impacted or are at a high risk of being impacted by shifts in Federal policies; and
WHEREAS, due to the uncertainty surrounding the constitutionality of the federal government’s recent executive actions, the County wishes to acknowledge and address the fact that such actions may ultimately impact the federal grant funding the County receives annually; and
WHEREAS, while such federal actions threaten Cook County’s access to various federal grant funds, the County must position itself operationally and financially to ensure the public health and safety of current and future Cook County residents, and accordingly, it is prudent for the County to ensure that financial resources are available to address the cancellation and/or limitation of federally funded grant monies not renewed to the County; and
WHEREAS, to further this objective, the County desires to establish a Federal Grant Risk Mitigation Fund (the “Fund”) and appropriate funds to address the County’s needs in response to any future loss or denial of federal grant funds awarded to the County; and
WHEREAS, the funding of the Federal Grant Risk Mitigation Fund will be subject to the annual appropriation process; and
NOW, THEREFORE, BE IT RESOLVED, by the Cook County Board of Commissioners, that a Federal Grant Risk Mitigation Fund (the “Fund”) shall be created, and that the Director of Budget and Management Services shall manage the Fund in consultation with the Chief Financial Officer or designee; and
BE IT FURTHER RESOLVED, that the Cook County Board of Commissioners do hereby authorize the Chief Financial Officer to assign a portion of the unassigned year-end General Fund Balance for stabilization of the Federal Grant Risk Mitigation Fund in an amount not to exceed $75,000,000, in any given year, and such contribution will be subject to appropriation and based on an analysis of projected year-end unassigned General Fund Balance in accordance with the County’s Fund Balance Policy; and
BE IT FURTHER RESOLVED, that the Chief Financial Officer shall be authorized to make such transfers and/or assignments in the Federal Grant Risk Mitigation Fund if authorized in the Annual Budget Resolution and said appropriations will remain based on an analysis of projected year-end unassigned General Fund Balance in accordance with the County’s Fund Balance Policy; and
BE IT FURTHER RESOLVED, the expenditure of said funds in the Federal Grant Risk Mitigation Fund will be permissible upon the loss/limitation/cancellation and/or non-renewal of any high-risk reoccurring federally funded grants awarded to the County and the use of available funds must also be approved by the Chief Financial Officer and the Director of Department of Budget and Management Services; and
BE IT FURTHER RESOLVED, that the Department of Budget and Management Services shall collaborate with the Chief Financial Officer as well as applicable County departments and agencies to track the expenditures of funds from the Federal Grant Risk Mitigation Fund; and
BE IT FURTHER RESOLVED, the Department of Budget and Management Services shall collaborate with the Chief Financial Officer as well as applicable County departments and agencies to provide a written report to the Finance Committee of the Cook County Board of Commissioners on the uses of the Federal Grant Risk Mitigation Funds annually, and that they should be provided for receipt and file with the Cook County Board of Commissioners.
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