AUSTIN (KXAN) — After devastating flash floods hit Central Texas, some Austin City Council members are urging the federal government to reinstate a grant — previously awarded and then taken away — that would have protected Austin infrastructure from floods.
In Austin, that $50 million federal grant was earmarked for the Fallwell Lane Capital Renewal Project, which would have made the South Austin Regional (SAR) Wastewater Treatment Plant and the Austin Energy Sand Hill Energy Center (SHEC) more resilient to floods.
Both facilities, right next to each other, border the Colorado River, which has flooded in the past.
"In April 2025, FEMA cancelled a $50 million Building Resilient Infrastructure and Communities (BRIC) grant for pre-approved flood mitigation investments in Central Texas. BRIC is not only essential for Austin’s already-budgeted projects – it’s a lifeline for rural communities like Kerr County, where some of the most tragic loss of life occurred this month," a letter from Austin leaders to FEMA and Department of Homeland Security Secretary Kristi Noem said.
The original letter, drafted by Austin City Council Member Zo Qadri can be read here. That letter was altered by the mayor and ultimately sent to state and federal officials.
"After touching base with Council Member Qadri and our Office of Government Relations regarding the broadest vehicle to demonstrate the impact to the entire city and Central Texas, he graciously agreed to allow the letter to come from my office. Carrie’s team will distribute this letter to the Department of Homeland Security Secretary Noem, as well as FEMA leadership. We will also share the letter with Austin-area federal, state and local elected officials and stakeholders," Austin Mayor Kirk Watson wrote.
While on the ground in Texas, Noem addressed cuts to FEMA, an agency President Donald Trump has indicated he wants to phase out.
"We're cutting through the paperwork of the old FEMA, streamlining it, much like your vision of how FEMA should operate, and it's been a much better response," Noem said.
KXAN has reached out to FEMA regarding this specific letter from Austin leaders and the grant reinstatement request and will update this story if we hear back.
We have previously reported that the city of Austin estimates a single catastrophic flood at these two infrastructure facilities could cause an estimated $1.6 billion in losses and impact operations at both plants.
LIST: Austin federal grant funding losses include $50M for flood mitigation, $15M for public healthThe city has said the wastewater treatment plan represents half the wastewater treatment plant capacity for the city, and the energy center represents 24% of the base load power capacity.
"The July 4th floods were devastating. Lives were lost, homes destroyed, and our infrastructure overwhelmed. That’s why I came together with my colleagues in urging FEMA to reinstate the Building Resilient Infrastructure and Communities (BRIC) funding Austin had already secured. This isn’t about politics, it’s about protecting people. We’re ready to work with federal partners on adjustments, but we need action now to keep our communities safe," Qadri said.
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