New Orleans City Hall is trying to pull $14 million back from its own utility as a deepening cash crunch forces officials to scrape for every available dollar. Last Wednesday, the city’s chief administrative officer formally asked the Sewerage and Water Board of New Orleans to return roughly $14 million the city had set aside as a federal match pledge for a HERO infrastructure grant. City leaders say they need liquid funds to cover immediate obligations, putting them at odds with the utility and tightening an already fraught budget picture as they hunt for cash to close shortfalls.
Giarrusso’s letter seeks a quick payout
In a letter sent last Wednesday, Chief Administrative Officer Joe Giarrusso asked the board to send back the $14 million and also requested that the city withhold about $3.3 million in traffic-camera revenue to offset roughly $3.22 million the board owes for the Max Pave program, as reported by WWLTV. The letter noted that state-administered HERO funds have not yet arrived, leaving the city’s pledged match tied up while expenses continue to mount.
Board points to reimbursements and ongoing reconciliation
The Sewerage & Water Board says it is working to reconcile accounts with the Department of Public Works and points to recent reimbursements it has already made to the city. In a press release, the board said it had paid roughly $6.5 million to the city between October and November 2025 and that it remains committed to repaying agreed project costs, Sewerage & Water Board of New Orleans stated.
How the $14M landed in city accounts
The money now in dispute was placed in city accounts through bond and budget maneuvers intended to satisfy local match requirements for federal grant work. City Council budget documents and ordinances show the council has been moving bond proceeds and other appropriations to support infrastructure match obligations in recent budget cycles, according to New Orleans City Council records.
Program background and what the board says it did
According to reporting, the board told the city in a March 13 letter that it had executed a letter of intent with the federal partner for the HERO program and that it had relied on the city’s pledge when planning the work. In that same correspondence, the board also agreed to return the $14 million, WWLTV reported. The dispute ties into the city’s Max Pave and Interim Pavement Restoration efforts, a Department of Public Works-managed program described in Louisiana DOTD contract filings and a board report to the council that has been used to repair hundreds of utility cuts and interim pavement restorations, outlining the program’s scope and past reimbursements.
What’s next for the money and the budget
City and board officials say they will continue reconciling project accounts and coordinating reimbursements, but the immediate effect of the request is to free up cash the administration says it needs to meet short-term obligations. The city’s chief administrative officer has repeatedly warned about tight balances. “We’re nowhere close to being out of this,” he said in February amid broader deficit-cutting moves, as reported by WVUE/FOX 8. Officials on both sides say the next steps will be technical work such as reconciliations, account audits and, if necessary, formal council action to reallocate funds.
