Cash from Washington was their lifeline. Now it’s gone.

By Alex Guillén | 09/15/2025 01:11 PM EDT

“The risk is way too high and the effort is way too large,” said one environmental group founder about federal grants.

River erosion is threatening to subsume critical infrastructure used to offload diesel and gasoline from ships.

River erosion is threatening to subsume critical infrastructure used to offload diesel and gasoline from ships for the village of Kipnuk, Alaska. Courtesy of Alaska Institute for Justice

Kipnuk, Alaska, received a once-in-a-lifetime opportunity early this year: a $20 million federal grant to stop the erosion that threatens its future.

Leaders of the isolated village got to work, purchasing a bulldozer and making plans to build a rock wall that would prevent its homes from falling into a river.

But in May, the Trump administration terminated Kipnuk’s grant, along with hundreds of others that President Joe Biden’s agencies had issued under the Inflation Reduction Act. Now the village leaders are scrambling for ways to replace the cash — while other recipients of the rescinded grants question whether they can ever trust the federal government’s promises again.

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“My mind was like, how could they terminate the grant, even when we did not do anything wrong?” Rayna Paul, the village’s environmental director, said in a recent interview as a storm that garnered a flood warning from the National Weather Service bore down.

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