Business Loop 70 improvement federal grant canceled

Madison Stuerman
COLUMBIA, Mo. (KMIZ)
A grant awarded to the Missouri Department of Transportation and the City of Columbia by the federal government has been canceled for the second time.
In a news release, Loop Community Improvement District spokesperson Carrie Gartner said a $2.13 million grant that would be used to improve Business Loop 70 in Columbia has been canceled.
“Federal Highway Administration has been told to withdraw the funds and close out the grant so we are unable to go forward with this important step towards a better street and a more welcoming gateway into Columbia,” the release states.
The grant was frozen in early March but was unfrozen within two weeks.
Gartner said the city and MoDOT were told on Friday the grant was canceled.
According to City of Columbia Engineering Manager Allison Anderson, the cancellation came as a result of President Donald Trump’s “One, Big Beautiful Bill” passing.
“Once that bill went through we kind of saw what was going to happen but Friday was when we got the official notice from federal highway,” Anderson said.
Gartner told ABC 17 News via email that about 60 communities across the nation were impacted as a result of the bill, accounting for $2.4 billion in funding.
“The people of Columbia and the City of Columbia have been amazingly supportive of our efforts to improve the Business Loop—which is not just an economic engine for the city but our main gateway into Columbia,” the statement reads. “Despite this setback, the Loop Community Improvement District hopes we have this same support as we explore all our options for funding this important redevelopment project.”
In a statement sent to ABC 17 News, the U.S. Department of Transportation said it plans to continue reviewing grant selections to ensure they align with the president’s executive orders.
The release from the Loop CID states that it plans to reapply for another federal grant if given the oppertunity but is also preparing if that does not happen.
“If federal funds are no longer available, we will work with the city to explore other locally-initiated funding tools that are not reliant on grants”
The grant was awarded in 2024 as part of the Reconnecting Communities and Neighborhoods Grant program. The grant was to be used to do a study of Business Loop 70 between Stadium Boulveard and Eastland Circle to find ways to improve safety for drivers and pedestrians.
“It’s kind of a gateway off of I-70 to our community and to have a really great looking business loop to just draw people, wanting to get them to stop in Columbia,” Anderson said. “Just really make business loop a quarter where people want to be again. Make it great for traveling in your car, but also for walkers and bikers.”
City officials requested $2.5-3 million for the study, according to the application filed in 2023. In October the City Council approved $500,000 in funds from the capital improvement sales tax to be used for the study along with the federal grant.
City spokesperson Sydney Olsen told ABC 17 News that the city plans to hold onto that funding in the project account as it explores other possible grants or funding mechanisms.
Owner of Woods Auto Spa on the Business Loop, Dimetrious Woods said hearing the news brings frustration for not only his business, but for the many small business owners in the city. He also said it raises the question of why.
“I’ve heard a couple things of Trump being involved in, or inflicting upon certain people. Me being myself, whenever it inflicts me, of course I’m going to open my eyes,” Woods said. “It doesn’t feel good hearing that it’s Trump. It’s been a lot of great policies but I’m not hearing a lot of great as of a thing like this. Who does a grant hurt? It only helps the community.”
The federal grant for the road safety audit of Business Loop 70 is still moving forward, according to Anderson.