SHELBIE HARRIS sharris@journalnet.com
POCATELLO — Federal funding cuts have stripped Pocatello of $24.5 million in critical infrastructure grants, forcing officials to shelve major projects.
The cuts have put two of the city’s major projects on hold, including the $8 million Terry First Connection and the $16.4 million South Fifth Complete Streets and Sewer initiative.
Pocatello Mayor Brian Blad confirmed the significant financial blow during a recent interview with the Idaho State Journal. Blad detailed how federal actions have eliminated funding for projects that would have improved community connectivity and also upgraded aging infrastructure while addressing environmental concerns.
“Terry First has been removed. We do not have the funding for Terry First,” Blad said, referring to the ambitious project that would have redesigned the Benton Street overpass to create safer bicycle and pedestrian access between Historic Downtown Pocatello and the city’s warehouse and university districts.
The Terry First Connection project, originally funded through the U.S. Department of Transportation’s Reconnecting Communities and Neighborhoods Grant, would have installed traffic signals, created bidirectional bicycle lanes along East Terry Street and South First Avenue, and added a buffered multimodal path on the Benton Street overpass. Construction was scheduled to begin in spring 2026 with completion expected by fall 2027.
While the project has been shelved indefinitely, the city received permission to use approximately $800,000 in previously allocated funds to complete project planning, ensuring the initiative remains “shovel ready” should alternative funding become available.
“We asked the federal government if we could use the money they already allocated to put together a plan so that once we do find the money to complete the project we are prepared,” Blad said. “So we didn’t lose all of it and we have a plan for what was already allocated.”
The South Fifth Complete Streets and Sewer project, however, incurred an even larger financial setback. The $16.4 million Environmental Protection Agency Community Change Grant was terminated on grounds that the remaining funding would not accomplish EPA priorities. The comprehensive initiative would have addressed nitrate contamination in the Eastern Snake River Plain Aquifer while transforming three miles of South Fifth Avenue near the Bannock County Jail with new sidewalks, sewer line installations and a six-mile Portneuf Greenway trail.
“The South Fifth Complete Streets water and sewer project will get done, it’s just going to take us a few extra years,” Blad said about the project that called for the installation of sewer lines in neighborhoods currently without city connections, adding 57 drinking fountains in city parks, and constructing interpretive signs for local petroglyphs on a Greenway trail along the lava cliffs by the highway pond.
The cuts also eliminated $700,000 in funding from the Urban and Community Forestry grant, though the city had already spent $300,000 of the million-dollar allocation after receiving permission to use those funds to complete an urban forestry plan.
City officials have formally appealed the termination of both major losses and several other grants to federal authorities, with particular focus on the South Fifth project. “We have appealed to the federal government to reconsider that decision,” Blad said, though he acknowledged the chances of recovery remain small.
The cuts represent roughly half of the $50 million to $60 million in federal grants Pocatello had secured. And while Blad said the cuts are a significant blow to the city, it’s not as devastating considering the Gate City has historically received far fewer federal awards.
“They’ve taken back about $24 million, but we’ve never had a year like this to start with,” Blad said. “So, we’re probably still ahead of the curve right now.”
Multiple major infrastructure projects remain unaffected by the federal actions, according to a recent city news release.
The Centennial/Rainey Park Levee Setback project, funded by the Bureau of Reclamation, continues moving forward with construction expected to begin in 2026. The U.S. Army Corps of Engineers has completed its 60 percent design review and contractors have submitted 90 percent designs.
The Oxbow Project, also funded by the Bureau of Reclamation, remains on track with surveying and site assessment underway. A 60 percent design is expected by fall 2026, when public input will be sought.
Several Greenway trail projects funded through multiple sources continue advancing, including the Monte Vista to Pocatello Creek Road segment and the Pocatello Creek Road to Bannock County Events Center connection, both scheduled for 2025 construction.
The Brennan Bridge project, connecting the Brennan Trail to Millward Mile, is planned for 2026 construction.
Forest Service wildfire fuels reduction funding remains secure, with juniper removal from city-owned land planned for winter 2025-26.
An Idaho Community Development Block Grant will fund public restroom installations at three locations by the end of 2025 — Optimist/Tydeman Park, Lower Ross Park and Upper City Creek.
The Portneuf Watershed Partnership, supported by Bureau of Reclamation funding, continues through collaboration with Trout Unlimited and the University of Idaho. A new river access point near Simplot will be constructed in fall 2025 with support from Simplot and Idaho Parks and Recreation.
Blad expressed cautious optimism about future federal funding opportunities, citing the current Presidential administration’s emphasis on infrastructure development and commending city partners with boots on the ground in Washington D.C. who are advocating for Pocatello.
“This administration has a strong emphasis on building out infrastructure, and so there are still quite a few grants available for that,” he said. “We just have to match that infrastructure for our needs and that South Fifth Complete Streets project is a great example of that.”
The city continues working with a lobbyist who helped secure partial funding retention for both the Terry First and urban forestry projects.
“We’re still writing grants. There’s just probably fewer grants going out now than before,” Blad said, emphasizing the city’s commitment to pursuing alternative funding sources while maintaining project readiness.
The mayor characterized the funding cuts as part of a challenging summer for the city but maintained an optimistic outlook for Pocatello’s trajectory.
“I think the city’s in a good place — a lot better place than we were in May or June,” he said, pointing to successful budget hearings that generated only two public comments as evidence of community stability.
Blad noted shelved projects remain priorities rather than abandoned initiatives. The South Fifth sewer improvements will eventually proceed using ratepayer funds if appeals to the current administration remain unfruitful, he said, while the Terry First Connection awaits new grant opportunities or alternative financing mechanisms.
The funding losses reflect broader federal policy changes affecting infrastructure and environmental programs nationwide, though local officials remain focused on maintaining momentum on approved projects while seeking new opportunities for shelved initiatives.
“I think everything’s moving in the right direction,” Blad said. “Pocatello is in a good place, quite frankly. We’re doing the things that we need to be doing. The departments are working hard. The employees are doing what they need to do. And I think we have a great thing going.”